Published: Sun, August 13, 2017
Business | By Max Garcia

North Korea tensions are set to cause a stir on Wall Street

North Korea tensions are set to cause a stir on Wall Street

The Dollar weakened against a basket of major currencies on Thursday, after U.S producer prices declined the most in 11 months - falling 0.1% in July, while unemployment claims rose last week.

"We're still close to the all-time high so that makes people a little nervous too, so they might say now might be the time to take a little bit of money off the table".

Japanese markets were closed for a holiday but the tense mood dragged Asian shares lower and an MSCI index of stocks across the globe was on track to post its largest weekly drop since the week before Donald Trump won the US presidential election in November.

United States gold futures gained 0.2% to $1,292.70.

"The latest threats over North Korea have finally escalated to the point where market has been obliged to react", Ric Spooner, chief market analyst at CMC Markets, wrote in a note.

"What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney. "Hard to assess political risk is now intruding on this scenario".

The Swiss franc and Japanese yen are often sought out in times of geopolitical tension or global financial stress, partly because both countries have big current account surpluses.

The pan-European FTSEurofirst 300 index lost 1.06 percent and MSCI's gauge of stocks across the globe shed 0.17 percent.

For now, the dollar remains on the back foot, pulling back 0.1% to 0.9635 Swiss francs today, after dropping as much as 1.2% to a two-week low overnight. She says Germany would work to find diplomatic solutions with the countries involved, the US and China in particular, but also South Korea.

Earlier, the dollar slipped as low as 108.91 yen, its weakest level since June 14, when the greenback fell as low as 108.81 yen. The tech-heavy Nasdaq composite lost 2.1 percent to 6,216.87. Trading is available via the MT4 and MT5 platforms with spreads starting from just 1.3 on Standard trading accounts and from 0.1 on ECN trading accounts.

Spot gold was up 0.1% at $1,287 per ounce by 2.17pm GMT, set for its biggest weekly gain since April.

Crude futures meanwhile extended losses on fears of slowing demand and lingering concerns over global oversupply. The DJIA was poised for a fall of 1.1%, making for its worst week since a 1.5% drop in the one ended March 24. The contract fell 97 cents, or 2 percent, to close at $48.59 a barrel on Thursday.

US crude fell 0.41 percent to $48.39 per barrel and Brent was last at $51.68, down 0.42 percent on the day.

Global benchmark Brent LCOc1 was marginally lower at $51.88, after Thursday's 1.5 percent drop.

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