Saturday, 16 December, 2017

Wall St higher but on track for deep weekly losses

Wall St higher but on track for deep weekly losses Wall St higher but on track for deep weekly losses
Nellie Chapman | 14 August, 2017, 02:30

North Korea has said it may attack Guam in retaliation.

Stock futures were trading lower on Friday, Aug. 11, as concerns over North Korea and President Donald Trump kept global markets on edge.

Should losses extend after markets open, it will mark Wall Street's fourth day in a row and the Dow's retreat from a record-making stretch at the beginning of the week that extended nine days.

The VIX rose further yesterday, as far as 12.63, its highest in more than a month.

The market's main safe-haven, gold, hit a two-month high of 1278 an ounce.

"There's uncertainty and caution as investors nervously eye the next foreign policy moves".

UN Secretary-General Antonio Guterres said he was deeply concerned about the tensions on the Korean Peninsula and was "troubled" by the increase in confrontational rhetoric.

'Stock markets in Europe are still under pressure because of the heightened tensions surrounding North Korea, ' said David Madden, market analyst at CMC Markets UK. TMX Group Ltd was up 3.2 per cent to C$68.02, while Quebecor Inc added 4.3 per cent to C$45.20 and Canadian Tire Corp Ltd climbed 5.7 per cent to C$149.89. South Korea's KOSPI was down 1.7 percent and Hong Kong's Hang Seng 1.8 percent. The yen also gained against the euro, with euro/yen dropping to 129.03.

"We would now be careful with a whiff of risk aversion in the air and, by extension, also stay away from shorts in the rates market", RBC's global macro strategist Peter Schaffrik said. "Safe-havens are bid and markets are a little uneasy".

The dollar was up 0.05 percent to 109.25 yen, after earlier falling to a sixteen-week low following data showing USA consumer prices rose less than expected in July. The WSJ dollar index, which measures the greenback against a basket of currencies, was up 0.1%. Global benchmark Brent also lost 0.9% to $51.44, after Thursday's 1.5% drop. The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors there will repatriate funds should a crisis materialize.The Swiss franc, the other traditional safety-play among currencies, has benefited too.

Toyota was up 0.59 per cent at 6,273 yen, Panasonic was up 0.50 per cent at 1,494 yen, and SoftBank was up 0.31 per cent at 8,832 yen.

The technology sector .SPLRCT was the S&P's biggest drag with a 2.2 per cent drop. Two weeks ago it saw its biggest weakly fall against the euro since the start of 2015.

Yields on core government debt fell.

The yield on the 10-year Treasury bond fell to 2.2% and is approaching its lowest level of the year.

The stock market jitters came as North Korea outlined plans to launch missiles aimed at the waters off the coast of the US Pacific territory of Guam.

Oil prices edged higher after a report showed USA refineries processed record amounts of crude in the latest week, eating into inventories, although a surprise jump in gasoline stockpiles limited gains.

Spot gold added 1.2 per cent to US$1,275.60 an ounce.

Copper lost 0.39 per cent to US$6,455.00 a tonne.