Shares hit by US-North Korea tensions

Andrew Cummings
August 13, 2017

It was 0.2 percent lower at 1.1310 francs, compared with highs of 1.1537 francs hit a week ago. The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56.

FIRE AND FURY: Keeping up his tough talk, Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face extraordinary trouble, and suggested his earlier threat to unleash "fire and fury" on North Korea was too mild. Trump's comments followed reports that the North has mastered a technology needed to strike the United States with a nuclear missile. But the moves were modest.

U.S. producer prices unexpectedly recorded their biggest drop in almost a year, and the number of Americans filing for unemployment benefits unexpectedly rose last week.

World equity markets were lower Friday on the back of simmering tensions between the United States and North Korea, but firmer prices on Wall Street helped put a floor under the losses in Europe, dealers said.


In overseas trading, stock markets across the Asia-Pacific region saw further downside during trading on Thursday.

Fawad Razaqzada, technical analyst at FOREX.com, said geopolitics will continue to dominate investor sentiment over the short-term. The stock lost 78 cents to $3.93.

On the week, the Dow Jones lost 0.9 %; the S&P 500 has dropped 1.4 per cent, its biggest weekly decline in more than four months. S&P futures fell 0.2 percent while Dow futures also lost 0.2 percent. Financial companies and department store operators were among the big decliners. Brent crude, used to price global oils, was down 17 cents to $51.73 a barrel in London. Macy's was down 9.7 percent after the company said its sales continued to decline in the second quarter. The company booked a hefty charge and said its CFO is leaving the company. The stock added $2.20 to $33.67.

Health care stocks, which have been in a slump, posted gains. The euro slid to $1.1732 from $1.1752.


The geopolitical turmoil appeared to have more of an impact overnight and into early Wednesday.

Shares Snap fell 1.94, or 14%, to 11.83 after the Snapchat parent reported earnings late Thursday that missed analyst forecasts.

Nasdaq 100 e-minis were down 38.75 points, or 0.65 percent, on volume of 38,566 contracts.

In Toronto, the composite index S&P/TSX has, nevertheless, yielded 40,87 points, to close at 15 033,38 points. The stock fell $169 to $1,879.98. Chinese blue chips closed flat but Hong Kong's Hang Seng Index fell 0.4%. Northern Star Resources was up 3 per cent, while Evolution Mining rose 2 per cent, Newcrest Mining gained 2.3 per cent and Resolute Mining rose 2.1 per cent. Westgold Resources was the biggest gainer, rising 6.6 per cent. Copper fell 2 cents to $2.93 a pound.


The local currency closed at 1,143.50 won against the USA dollar, down 1.50 won from the previous session's close.

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