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Wall Street Stages Recovery, but North Korea Keeps Rally From Takeoff

12 August 2017

"Gold and silver are higher, thanks mainly to their status as safe-haven commodities".

Japan's Topix index had the biggest slide in nearly three months, falling 1.3 per cent on trading volume 22 per cent higher than the 30-day average at the close. The Dow Jones industrial average slid 0.9 percent to 21,844.01.

Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts. The Russell 2000 index gave up 24.40 points, or 1.7 percent, to 1,372.54.

Mr Trump ratcheted up his rhetoric toward North Korea on Thursday, saying it should be "very, very nervous" if it even thinks about attacking the United States or its allies, after Pyongyang said it was making plans to fire missiles over Japan to land near the US Pacific territory of Guam.

Gold steady near 2-mth highs as N. Korea tensions continue
Declining issues outnumbered advancing ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.47-to-1 ratio favoured decliners. Australia's S&P/ASX 200 edged down almost 0.1 percent to 5,760.90, while South Korea's Kospi fell 0.5 percent to 2,357.84.

Simmering tensions between the USA and North Korea have come back to the boil in recent days after Pyongyang disclosed plans to fire missiles over Japan to land near America's Pacific territory of Guam.

While the tough talk about the potential for war is scary, investors have heard it many times before. The stock lost 78 cents to $3.93. Australia's S&P/ASX 200 dropped 1.1 percent to 5,696.80. It usually moves opposite to stocks' movements and rises when the S&P 500 falls. Rival Advanced Micro Devices was also down 3.4 percent. TripAdvisor shares shed $1.75, or 4.4 percent, to $37.80. The company booked a hefty charge and said its CFO is leaving the company. Natural gas was also flat at $2.98 per 1,000 cubic feet. Wall Street was expecting more inflation.

Health care equipment and services company Henry Schein declined amid a broader slide by health care stocks. The S&P 500 sank 1.7% from Tuesday to Thursday, the Dow fell 1.1%, and the Nasdaq dropped 2.4%.

USD/JPY also remained under pressure with a dip below the 109.00 level for fresh 8-week lows and this combination inevitably put further upward pressure on gold.

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Japan's benchmark Nikkei 225 inched down less than 0.1 percent to finish at 19,729.74.

Bond prices were little changed. "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".

"Risk aversion is once again the name of the game... as geopolitical tensions mount and investors head for cover in the traditional safe havens", said Oanda analyst Craig Erlam. Meanwhile, after jumping $10.80 to $1,290.10 an ounce in the previous session, gold futures are climbing $6.50 to $1,296.60 an ounce.

Sterling was last trading at $1.3007, up 0.25 percent on the day. Brent crude, used to price global oils, gave up 29 cents to $51.85 in London.

US Consumer Prices Inch Up 0.1% In July
Fed Chairwoman Janet Yellen only has two more press conferences scheduled, one in September and the next in December. Categories showing gains included apparel, medical care and transportation services, and owners equivalent rent.

The U.S. dollar fell to 110.48 yen from 110.72 yen late Monday.