Published: Fri, August 11, 2017
Culture | By Julio Duncan

Wall Street lower on US-North Korea tensions

Wall Street lower on US-North Korea tensions

Trump's remarks were provoked by Pyongyang's threats of "physical" retaliation for new sanctions imposed by the United Nations and vocally supported by the US and South Korea.

President Trump's stern warning that North Korea's threats will be met by "fire and fury like the world has never seen" raised fears of a nuclear attack on America's western coast, causing countless deaths and decimating the wellspring of America's prosperity, the tech titans of Silicon Valley.

Weakness in oil prices continued for the third day as concerns persist over OPEC cuts. Japan's Nikkei 225 Index edged down by 0.1 percent, while Hong Kong's Hang Seng Index tumbled by 1.1 percent. A U.S. Navy destroyer sailed within 12 nautical miles of an artificial island built up by China in a challenge to Beijing's territorial claims, officials told Reuters.

The euro fell a quarter-of-a-percent against the dollar to trade at $1.1728 as European markets opened.

The biggest fallers were G4S down 24.7p to 305.9p, Standard Chartered down 20.9p to 783.1p, Prudential down 44p to 1,841.5p, Shire down 92p to 3,945p.

The Nasdaq Composite was down 30.74 points, or 0.48 percent, at 6,339.72.

Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively.

Charter Communications rose 2.9 percent on news Altice is exploring a bid for the cable giant.

Earlier in the day, the Office for National Statistics (ONS) reported that overall industrial production rose 0.5% in June on the preceding month, stronger than the 0.1% that the agency had calculated in for its preliminary estimate for the second quarter, after May's production was revised to flat. Benchmark U.S. crude fell 83 cents, or 1.7 percent, to $48.73 a barrel on the New York Mercantile Exchange. The figure showed a decline of 1.1% versus expectations for a 0.5% drop and reversing from a 1.9% gain in May.

Nine of the 11 major S&P sectors were lower, with the consumer discretionary index's 10.2 percent fall leading the decliners.

The benchmark USA yield on Thursday was just above 2.2 percent, at its lowest level since late June, as investors bought up Treasuries, a classic safe harbor.

Gold hit its highest in nearly two months after Trump added to the geopolitical anxiety by boasting of the strength of the U.S. nuclear arsenal.

In commodities trading, United States crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut.

The biggest risers on the FTSE 100 Index were Fresnillo up 72p to 1,544p, Randgold Resources up 200p to 7,380p, WorldPay Group up 4.9p to 388.5p, BAE Systems up 7p to 582.5p. The kiwi is likely to find support near 1.62 against the euro and 1.09 against the aussie.

September silver SIU7, +1.35% also added 22.2 cents, or 1.3%, to $17.085 an ounce, also in territory last seen about two months ago.

Globally, France's CAC 40 share index fell 1.5 percent by the afternoon; Germany's DAX fell 1.3 percent.

The Japanese yen strengthened 0.35 per cent versus the greenback at 109.94 per dollar.

Markets were also lower in Europe and Asia. South Korea's Kospi fell 0.2 percent.

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