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Trump outbursts wipe $1 trillion off markets

13 August 2017

The damage inflicted on world stocks this week by the escalating war of words over North Korea topped $1 trillion on Friday, as investors again took cover in the yen, the Swiss franc, gold and government bonds.

Only utilities-sector stocks eked out a gain, on a day of mostly listless trading as investors kept an eye on the latest company earnings and geopolitical news.

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

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".

The dollar last changed hands at 108.96 yen, down 0.2 percent. It is trading at its best level in two months, and is threatening to crack the $1,300 level for the first time since the day following the U.S. presidential election.

North Korea's Nuclear Weapons Program Has Grown With Each Kim Regime
He did not elaborate. "(The North has) improved their missile launch capacity, but that's neither here nor there", he said. Aegis is able to track 100 missiles simultaneously and fire interceptors to take out an enemy's ballistic projectiles.

The escalation provided an excuse for a selloff many investors consider overdue, some investors and analysts said.

Stocks ended more than one percent down in Seoul while the won slumped to a three-week low against the dollar as the United States president and South Korea's volatile neighbour dramatically ramped up their war of words.

U.S. Treasury long-dated yields dropped to six-week lows, pressured by U.S. Major U.S. indices had posted record highs in recent weeks. It slipped Friday but was up more than 50% for the week.

Outside of geopolitical concerns, disappointing company earnings and outlooks put traders in a selling mood. These mark a bucking against the 1.3% fall in Australia's benchmark index. On Thursday, fellow newly public company Blue Apron Holdings lost 18% after the meal-kit maker reported rising costs amid increased competition.

Adding to the modest losses posted in the two previous sessions, stocks moved sharply lower over the course of the trading day on Thursday.

Trump Alarms Venezuela With Talk of a 'Military Option'
Trump had said the military option was among a range of scenarios he was considering to fix the "very risky mess" in Venezuela. But most Venezuelans tended to shrug the accusations off as the diversionary tactics of an unpopular leader.

Priceline Group slid 6.9 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting. The market was waiting f or US consumer inflation data on Friday that would offer more clues about future Fed decisions. Odds of a Fed rate rise during the December meeting now stand at around 40% according to the CME Group's 30-day Fed Fund futures prices.

OPEC pumped more oil in July as global oil supplies rose for the third straight month, the IEA said Friday, giving figures that cast further doubt on the cartel's pledge to cut output to raise prices.

Aside from geopolitical concerns, gold-focused investors are awaiting USA inflation data set to be released on Friday (August 8).

Despite the past week's decline, the major indexes are in positive territory so far this year, led by the Nasdaq, which is up 16.2 percent.

Arsenal 2-3 Leicester (Vardy 56)
Alejandro Moreno responds to Jose Mourinho's belief that Man United will be able to compete with Europe's best in two years. I don't think I am in a position of moaning, crying, contesting or to say I am not happy with it.

Trump outbursts wipe $1 trillion off markets