Published: Thu, August 10, 2017
Electronics | By Jesus Weaver

Swiss franc, yen rise as North Korea tensions brew

Swiss franc, yen rise as North Korea tensions brew

An afternoon recap of the day's most important business news, delivered weekdays. Silver also rose, gaining 38 cents, or 2.3 percent, to $16.77 an ounce. The Dow is down 61.31 points or 0.3% at 22,024.03, the Nasdaq is down 30.87 points or 0.5% at 6,339.59 and the S&P 500 is down 5.90 points or 0.2% at 2,469.02.

London's benchmark share index closed down 45 points amid fears of a military conflict between the U.S. and North Korea.

The South Korean won sank more than 0.8 percent to as much as 1,137.3 to the dollar, its lowest since July 14.

The Swiss franc was on pace for its biggest single-day rise against the euro since the Swiss National Bank removed its cap on the currency in January 2015. The tech-heavy Nasdaq Composite (COMP - 6,352.33) lost 18.1 points, or 0.3%.

Gold tends to outperform stocks when the markets are sliding, so it is unusual for such a conservative investment to beat equities when they have been on a tear as has been the case this year.

Simmering geopolitical tensions put global stock markets under pressure yesterday as Washington and Pyongyang escalated their war of words.

"Institutional investors appear to be, once again, considering an allocation to gold", Naylor Leyland said. "But we do think that there are risks in the world that are not being priced in".

The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4 percent.

"Trump's response was aggressive and that's why the (stock) market turned lower", said Ken Polcari, director of the NYSE floor division at O'Neil Securities.

A widely followed measure of market anxiety jumped late in the day to close at its highest in almost a month.

Ten out of the 11 major S&P 500 sectors ended lower after the comments with the only gains seen in the utilities sector .SPLRCU , which is seen as a bond proxy because of its slow but predictable growth and dividends.

Media giant CBS rose 1.8 per cent after reporting better-than-expected second-quarter earnings as it boosted subscriptions to the network's streaming services. "Investors have a good excuse to stay on the sidelines".

That could result in sharper moves downward in stock market indexes. However, it fell below 20,000 on Tuesday amid dented market sentiment and increased selling.

Some Mainers are concerned about threats leading to a nuclear attack, while others are defending the President's actions and feel that North Korea's threats are empty ones.

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