Published: Сб, Августа 12, 2017
Money | By Armando Alvarado

North Korea tensions continue to weigh on global stocks

North Korea tensions continue to weigh on global stocks

All three of the major stock market indexes fell for a third straight session for the first time since April amid continued heated rhetoric between the US and North Korea.

Stocks saw some strength during trading on Friday, regaining ground following the sell-off seen in the previous session.

The Dow Jones Industrial Average was down 0.3%, after breaking a nine-day rally on Tuesday.

The S&P 500 volatility index jumped again on the latest jawboning in the US-North Korea standoff.

The price of gold also surged for the second day in a row as the December bullion contract advanced $10.80 U.S.to $1,290.10 U.S.an ounce.

"When President Trump declared that the USA is "locked and loaded should North Korea act unwisely", investors became even more fearful".

"A pullback is good so the market doesn't get unidirectional".

Trump suggested in remarks on Thursday that his comments threatening North Korea with "fire and fury" may not have been tough enough.

Amid the hot rhetoric, USA stocks sold off sharply on Thursday, with the S&P 500 falling more than 1 percent.

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Despite the ongoing turmoil, investors' focus was slowly returning to the United States economy after Chicago Federal Reserve president Charles Evans said Wednesday it would be "reasonable" to announce the beginning of a reduction of the Fed's balance sheet next month.

Retailers Wal-Mart (WMT), Home Depot (HD), Target (TGT), Staples (SPLS), and Gap (GPS) are also among the companies due to report their quarterly results next week.

Losses at the Snapchat parent ballooned to $443 million in the second quarter, a almost fourfold increase from the same period past year.

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

The escalated talk of violence between the two countries simply provided an excuse for a selloff many investors consider overdue, some investors and analysts said.

Many market participants have been calling for a significant decline on the S&P 500.

"We're not very oversold yet so the market still has more downside left to it".

"While the US President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution", Carnell said. The S&P 500 and Dow were both coming off record highs. It slipped a bit Friday, but was still on track to end the week up more than 50%. Meanwhile, markets in Japan, South Korea and other Asian countries were also lower, and so-called futures signaled that USA markets would also open down. The Stoxx Europe 600 fell 1%, while benchmarks in Hong Kong and South Korea - which had been one of the best performers of 2017 - closed down 2% and 1.7% respectively, Friday, putting the week's drop at 2.5% and 3.2%.

The 30-year bond US30YT=RR last fell 6/32 in price to yield 2.8451 percent, from 2.837 percent late on Monday.

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