Published: Sun, August 13, 2017
Money | By Armando Alvarado

TSX falls as North Korea tensions spur flight to safety

TSX falls as North Korea tensions spur flight to safety

"The escalation of the geopolitical situation between the USA and North Korea is beginning to rattle investors' nerves as was witnessed in the VIX index yesterday", said Peter Cardillo, chief market economist at First Standard Financial.

KOREA JITTERS: With President Donald Trump warning North Korea of "fire and fury", investors have become concerned that the war of words between Washington and Pyongyang could escalate.

The yield on the 10-year Treasury bond fell to 2.2% and is approaching its lowest level of the year.

While gold, a safe-haven favorite, pared some gains, it was last up 1.2 percent, at around its highest since mid-June.

Amid the hot rhetoric, USA stocks sold off sharply on Thursday, with the S&P 500 falling more than 1 percent. Chinese mainland shares were also down 1.8 percent.

The Toronto Stock Exchange's S&P/TSX composite index closed down 143.08 points, or 0.94 per cent, at 15,074.25, its lowest close since July 7. Gold and bond prices were headed higher.

On Thursday, the CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the US presidential election.

The Nasdaq Composite .IXIC was up 34.61 points, or 0.56 percent, at 6,251.48.

Brexit transition would not be way to remain — Hammond and Fox
Mr Miliband also described Brexit as an "unparalleled act of economic self-harm". "The answer to the first question is "it is not impossible"; the answer to the second is "no".

Major stock indexes overseas also racked up losses Thursday.

"What has changed this time is that the scary threats and war of words between the United States and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney, as quoted by Reuters. "I don't see it as a fear-driven sell-off".

Michael Kors Holdings Ltd. climbed 21.5 percent after the luxury handbag and apparel designer and retailer's latest quarterly results beat analysts' forecasts as sales improved.

US crude oil +0.4% at $49.76/bbl. The September copper contract was down two cents to US$2.91 a pound.

Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 8.6 percent.

In other energy futures trading, wholesale gasoline was little changed at $1.62 a gallon, heating oil rose 2 cents to $1.65 a gallon and natural gas rose 6 cents to $2.88 per 1,000 cubic feet. Silver also rose, gaining 43 cents, or 2.6 percent, to $16.82 an ounce. The euro slid to $1.1732 from $1.1752.

The FTSE 100 firm announced in March past year that it would run its US-based asset management operation, its UK-based wealth unit, an emerging markets division and Nedbank in South Africa as separate businesses.

Auto parts maker Hyundai Mobis Co. was up 0.59 percent, and SK Telecom, the No. 1 mobile carrier in the country, gained 0.73 percent.

Like this: