Published: Fri, August 11, 2017
Economy | By Annette Adams

North Korea threatened Guam numerous times in the past

North Korea threatened Guam numerous times in the past

Following Trump's remarks, North Korea on Wednesday said it was "carefully examining" plans for a missile attack on the US Pacific territory of Guam, which is home to a large US military base.

With Japan and South Korea also warning North Korea, investors are taking a step back to see what is happening before chipping in back, Bakhos said.

The sabre-rattling - sparked when President Donald Trump stunned the world with an apocalyptic warning to unleash "fire and fury" on North Korea - continued Thursday as Pyongyang mocked the USA leader as "bereft of reason".

The Standard & Poor's 500 index fell 7 points, or 0.3 percent, to 2,466 as of 11:20 a.m. Wednesday on Wall Street.

The Japanese yen hit an eight-week high against the United States dollar, while spot gold also reached a two-month high. The Nasdaq composite lost 0.2 percent, to 6,370.46.

The euro slid 0.6 percent to 128.92 yen, and fell 0.2 percent against the dollar to $1.1732.

Canada's main stock index slipped in morning trade on Wednesday, as losses among financial shares offset a rally in gold miners as investors sought safety in the precious metal amid rising geopolitical tensions.

Pyongyang responded to provocations from President Trump and said it would consider using missiles against USA military bases in Guam. The comments follow reports that North Korea has mastered a crucial technology needed to strike the United States with a nuclear missile.

The focus on North Korea has largely overshadowed a Labor Department report showing an unexpected drop in USA producer prices in the month of July. European markets were also struggling amid the simmering political stand-off, with the Cac 40 in France dropping 1.4% and Germany's Dax tumbling by 1.1%.

Spot gold added 0.4 percent to $1,265.22 an ounce, pulling away from the previous session's two-week lows.

Copper rose 1.05 percent to $6,481.50 a tonne.

Nevsun Resources Ltd offset some of the material group's gains, plunging 18.4 percent to C$2.685 after the company reported disappointing quarterly results.

The call came hours after the communist state again threatened to stage a missile exercise in clear defiance of the latest U.N. Security Council sanctions resolution condemning its two missile provocations involving claimed intercontinental ballistic missiles last month.

Benchmark US 10-year notes rose 9/32 in price to yield 2.2494 per cent, from 2.282 per cent late on Tuesday.

BONDS: Bond prices rose. USA stocks also retreated (http://www.marketwatch.com/story/us-stock-futures-pull-back-as-north-korea-threatens-guam-2017-08-09), although Walt Disney Inc. shares (http://www.marketwatch.com/story/disney-and-netflix-what-the-split-means-for-viewers-2017-08-08)(DIS) were also a major source of pressure on the Dow Jones Industrial Average.

CURRENCY: The dollar declined to 109.77 yen from Tuesday's 110.34.

The euro fetched $1.1748, not far off from $1.1752 late Wednesday in NY. Brent crude, used to price global oils, gained 10 cents to $52.24 in London.

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