Guam's municipal debt trading volume spikes as North Korea tensions rise

Andrew Cummings
August 11, 2017

J.C. Penney (JCP.N) was down 17 percent after hitting a record low following the retailer's bigger-than-expected quarterly loss. Japan was closed on a public holiday.

Tensions between North Korea and the US have intensified in recent days after Trump warned of severe retribution should the authoritarian state proceed with any more missile tests or threats.

The Standard & Poor's 500 index slipped 0.90 points, or 0.04 percent, to 2,474.02.

In the eurozone, the Paris CAC 40 lost 0.5 percent compared with the closing level on Wednesday. He also said the nuclear-armed nation should be "very, very nervous" if it even thinks about attacking the United States or its allies.

Trump's second warning, however, has shaken markets that have been largely resilient this year, swatting away a slew of risks.

U.S. Treasury long-dated yields dropped to six-week lows, pressured by U.S.

The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4 percent.

On Wall Street overnight, the Nasdaq retreated 2.1 percent, while the S&P 500 was down 1.4 percent, and the Dow Jones Industrial Average pulled back 0.9 percent.

All three USA stock market indices were down Wednesday morning.

North Korea said it was "carefully examining" a plan to strike Guam with missiles in a response to Trump's incendiary comments on Tuesday that threats to the United States from Pyongyang would be met with "fire and fury".

Demand for the Japanese yen remained supported, with the dollar extending losses made in the Thursday session.

The dollar last changed hands at 108.96 yenJPY=, down 0.2 percent. The precious metal is usually seen as a safe port in times of geopolitical uncertainty.

Shares of US department stores Kohl's and Macy's were weak after their results. Economists had expected prices to rise by 0.2 percent. They were at 2.201 percent early on Friday.

Gold prices XAU= , which hit a two-month low on Thursday, were steady at $1,286.16 an ounce, after surging over 2 percent in the past two sessions.

The local currency was trading at 1,147.55 won against the US dollar, down 5.55 won from the previous session's close.

Economic data showed US worker productivity rose more than expected in the second quarter but the trend remained weak.

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.

The yen held steady against the dollar, taking a breather after having risen on Wednesday to its highest level in almost eight weeks.

USA crude was down 0.9 per cent at $48.16 per barrel, on track for a weekly loss of 2.9 per cent.

US crude futures extended losses from Thursday, when they plunged 2 percent on fears of slowing demand and lingering concerns over a global oversupply. The FTSE 100 index of leading British shares was 0.6 percent lower. The Russell 2000 index of smaller-company stocks gave up 13.20 points, or 0.9 percent, to 1,396.95.

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