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

S&P closes barely lower despite N. Korea tensions

S&P closes barely lower despite N. Korea tensions

Tillerson's tone was in sharp contrast to that of United States president Donald Trump, who warned on Tuesday any North Korean threat to the U.S. would be met with "fire and fury". The general also outlined plans to launch four Hwasong-12 ballistic missiles to strike the sea around US territory Guam. US Defense Secretary Jim Mattis told Pyongyang it should stop any actions that would lead to the "end of its regime and the destruction of its people".

METALS: Gold, a traditional safe haven play, was moving higher.

"Geopolitics splashed cold water on the markets", said JJ Kinahan, chief strategist at TD Ameritrade.

Trump tweeted yesterday about the strength of the American nuclear arsenal, but expressed hope it would not need to be used.

"We have the global economy doing quite well and some evidence that the USA economy can get back in gear and accelerate a little bit", he said.

At 12.28pm eastern time (16.28 GMT), the Dow Jones Industrial Average was down 52.87 points, or 0.24 per cent, at 22,032.47, the S&P 500 was down 2.8 points, or 0.11 per cent, at 2,472.12.

I would expect the stock market to react negatively.

Barrick Gold Corporation ABX stock popped 1.42%, while Newmont Mining Corporation NEM gained 1.01%.

The Standard & Poor's 500 index fell 5.99 points, or 0.2%, to 2,474.92.

Plans are being drawn up and will be ready by the middle of August, North Korea said. "Tensions are still high and not going away at the moment".

Assets that tends to benefit from rising uncertainty extended their gains Thursday. While the UK's FTSE 100 Index has slumped by 1.2%, the German DAX Index is down by 0.9% and the French CAC 40 Index is down by 0.4%.

Swiss franc surges as Korea tensions rise
ENERGY: Benchmark U.S. crude gained 1 cent to $49.57 a barrel in electronic trading on the New York Mercantile Exchange. In the eurozone, the Paris CAC 40 lost 0.3 percent compared with the closing level on Wednesday.

South Korea's Kospi fell 1.1 per cent as the won, ...

It is still the best performing G10 currency so far this year with gains of more than 11 percent against the dollar.

OIL: Benchmark U.S. crude added 21 cents to $49.38 a barrel on the New York Mercantile Exchange. The market slide accelerated slightly in the last half-hour of trading as Trump denounced North Korea's nuclear program.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday.

Bond prices rose. The yield on the 10-year Treasury fell to 2.20 percent.

"The market has been looking for an excuse to sell off and North Korea and the president gave the market that excuse, " said David Schiegoleit, managing director at US Bank Private Client Wealth Management.

Oil prices edged higher after a report showed United States refineries processed record amounts of crude in the latest week, eating into inventories, although a surprise jump in gasoline stockpiles limited gains.

In commodities, crude oil stretched gains after rising overnight on data pointing to declining USA inventories. After months of frustration over China's reluctance to pressure Pyongyang economically, the USA on Saturday secured a unanimous U.N. Security Council vote to authorize sweeping new sanctions that target one-third of the North's exports.

Gold prices jumped $10.70 to $1,290.00 ounce.

The two gainers were gold, up 1.6%, and materials, up 0.6%. Hong Kong's Hang Seng Index finished down 1.1%, while the Shanghai Composite Index fell 0.4% and Japan's Nikkei Stock Average lost less than 0.1%.

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