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Stocks slide on continued concern over tension between USA and North Korea

12 August 2017

Stocks are often shocked into a quick decline when a major geopolitical event occurs, but the ability to recover has been very different. "So we're not going to get to a year-over-year number of 2-percent until some of these very low readings drop out of the statistics 6 to 10 months from now".

The Dow and S&P 500 inched higher on the day but they both posted their largest weekly percentage drops since late March.

However, tensions between the US and North Korea, as well as concerns that worldwide oil supplies aren't falling as much as hoped, kept prices in check.

North Korea had responded to Mr Trump's previous promise to unleash "fire and fury", with a threat to land a missile near the US Pacific territory of Guam. Gold, meanwhile, a traditional safe haven for investors, gained $26.50 since Monday, closing Thursday at $1291.20 per ounce.

Singapore's DBS bank added in a statement that the yen "remains the safe haven currency from the sabre-rattling between US President Donald Trump and North Korea".

Children Die In Gorakhpur Hospital Due To Alleged Disruption Of Oxygen Supply
However, local sources said the legal action was on the cards against the firm accused of breaking the oxygen supply abruptly. Notably, CM Aditynath visited BRD hospital on Wednesday and inaugurated ten-bed ICU, a six-bed Critical Care Unit facility.

A Labour Department report showed its producer price index posted a surprise drop in July, down 0.1 percent for the largest slide in nearly a year.

The Dow slid as declines in shares of Apple and those of Goldman Sachs, recently down 2.3 per cent and 1.7 per cent respectively, outweighed gains in shares of McDonald's and those of Coca-Cola, recently up 1.4 per cent and 0.5 per cent respectively.

Comments from Russian state energy giant Gazprom about reopening a closed field - once the deal to curb supply and bolster prices expires also depressed sentiment. Core prices had been expected to rise by 0.2%.

ANALYST'S TAKE: The U.S.jobs figure "was through the roof" and the NFIB survey "painted a much better picture for the U.S. economy than most believed", said Stephen Innes of OANDA in a report.

Biotechnology stocks are turning in some of the market's worst performances on the day, resulting in a 2.4% drop by the NYSE Arca Biotechnology Index.

Guam adviser urges calm after North Korea threat
Patrons packed local restaurants, barely glancing at televisions bearing news of Pyongyang's latest threat against their homeland. Trump tweeted Friday: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

The S&P is trading near its most expensive valuation level since 2004, as measured by the price-to-12-month forward earnings ratio.

The market was also waiting for data that would offer clues about the extent to which the strengthening USA labour market is spilling over into inflation.

Meanwhile, gold stocks are bucking the downtrend, driving the NYSE Arca Gold Bugs Index up by 1.2%.

In currency markets, the dollar dropped as low as 109.74 yen, its lowest in about two months, from 110.39 yen in NY and the upper half of the 110-yen range in Tokyo earlier Tuesday.

The Toronto Stock Exchange's S&P/TSX composite index fell 57.36 points, or 0.38 percent, to 15,159.97 shortly after the open.

Wall St opens higher after tepid inflation data
It has to be said that this rise is not only due to the increase in global risk but also due to the slight weakness in the dollar. Penney slumped as much as 18.25 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.

Against the dollar, the franc surged 0.6 percent to 0.9688 francs, reversing a two-week losing streak.

Stocks slide on continued concern over tension between USA and North Korea