Published: Fri, August 11, 2017
Money | By Armando Alvarado

Global stocks slide as US-N. Korea nuclear tensions rise

Global stocks slide as US-N. Korea nuclear tensions rise

All 11 major S&P sectors were lower and the consumer discretionary index was the biggest loser with a 1 percent drop.

At 9:38 a.m. ET (1338 GMT) the Dow Jones Industrial Average was down 85.43 points, or 0.39 percent, at 21,963.27, the S&P 500 was down 10.31 points, or 0.42 percent at 2,463.71. Earlier, the average had been down more than 88 points. Platinum for October went up 1.6 dollars, or 0.16 percent, to settle at 976.1 dollars per ounce.

A sub-index of global gold miners that is dominated by Canada-listed stocks jumped 2 percent as escalating tensions between the United States and North Korea pushed up gold prices and weighed on global stock markets. It hit a 15-month low of 92.548 on August 2.

Stocks are ending broadly lower on Wall Street, led by declines in technology companies and banks, two of the highest-performing sectors over the past year.

Korea's Kospi stock benchmark lost 1.1% as geopolitical concerns grew, clipping its year-to-date gain to 16.9%.

Most large-cap stocks were mixed across the board.

Geopolitical concerns may continue to weigh on Wall Street amid a continued escalation in tensions between the U.S. and North Korea. Aside from the geopolitical drama, investors are digesting a rise in the U.K.'s trade deficit in June, as well as disappointing housing data for the region in July. Trump warned that the North would be met "with fire and fury".

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Tillerson's tone was in sharp contrast to that of U.S. president Donald Trump, who warned on Tuesday any North Korean threat to the USA would be met with "fire and fury". The comments follow reports that the North has mastered a technology needed to strike the United States with a nuclear missile. But the moves were modest. In other precious metals, silver surged 1.7% to $17.20 an ounce after hitting $17.24, its highest since June 14.

Meanwhile, 10-year U.S. Treasury yields edged higher to around 2.25 percent after slipping overnight.

THE QUOTE: While the tough talk about the potential for nuclear war is scary, investors have heard it many times before.

'Stock markets in Europe are still under pressure because of the heightened tensions surrounding North Korea, ' said David Madden, market analyst at CMC Markets UK. The stock lost $5.07 to $101.91.

USA missile makers Raytheon and Lockheed Martin have outperformed Wall Street by nearly 4 percent in recent days.

The index was down by 1.44% or 108.12 points to close at 7389.94 on Thursday in its worst performance for four months.

Elsewhere in commodities, the September crude contract was up 39 cents to US$49.56 per barrel, September natural gas advanced six cents at US$2.88 per mmBTU and the September copper contract declined two cents at US$2.93 a pound. Brent crude was flat at $52.16. the fall in price could have been attributed to rising gasoline inventories.

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