Global stocks fall on Trump's North Korea warning; US$ up after data

Global stocks fall on Trump's North Korea warning; US$ up after data

The Stoxx Europe 600 was down 1% in afternoon trade, while futures signaled the S&P 500 would open down 0.2% and the Dow Jones Industrial Average would open 0.1% lower. The Dow slid 33.08 points, or 0.2 percent, to 22,085.34.

The stock exchanges in NY saw tiny losses at the end of trading on Tuesday, while Dow-Jones Index and S & P 500 earlier notched new records.

The euro dipped 0.1 percent to $1.1733 but the single European currency has been slipping this week against the dollar, having hit a more than 2 1/2-year high of $1.1892 on August 2.

"I$3 t does appear to this economist that there is an acute shortage of cool heads at the top of the pyramids in both the United States and North Korea right now", Carl Weinberg of High Frequency Economics wrote in a note.

Losses at the Snapchat parent ballooned to $443 million in the second quarter, a almost fourfold increase from the same period previous year.

The FTSE 100 fell by more than 100 points as global investors continued to act on North Korea-related jitters.

Earlier, Trump warned North Korea on Tuesday it would face "fire and fury" if it threatens the United States, prompting the nuclear-armed nation to say it was considering firing missiles at Guam, a US-held Pacific island.

The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the election.

Watch maker Fossil Group plunged 25 percent after reporting a weak quarter. The stock fell $3.30 to $30.09.

Trump ratchets up rhetoric toward North Korea
Guam, a tropical island more than 3,000 km (2,000 miles) to the southeast of North Korea, is home to about 163,000 people. While the US position is that North Korea must ultimately give up its nukes, the North insists it must keep them.

The recovery fit a recent pattern of investors using dips to put more money in stocks. The drop was greater than an expected 2.37 million barrels.

Data storage company Seagate Technology (STX) posted a standout gain within the hardware sector, jumping by 2.4 percent. This week has been its biggest rise since June 2016.

US crude CLcv1 fell 0.55 percent to $49.12 per barrel and Brent LCOcv1 was last at $52.03, down 0.65 percent on the day. It added 39 cents to $49.56 a barrel overnight.

In other energy futures trading, wholesale gasoline rose 1 cent to $1.61 a gallon, while heating oil was little changed at $1.63 a gallon. It was last up 1.2 percent at 1.1305 per euro. Silver gained 14 cents to $16.39 an ounce.

Sales rose by 56% to $2.23 billion, exceeding estimates of $1.96 billion.

The dollar index, which gauges the greenback against the currencies of six major USA trading partners, was last 0.2% down on the day during afternoon European trading hours - it stood at 93.20.

France's CAC dropped 1.6 percent and Germany's DAX fell 1.3 percent. The Dow slumped by 1.1 percent, while the Nasdaq and the S&P 500 tumbled by 1.5 percent and 1.4 percent, respectively. Those highs were supported by strong corporate earnings, but lofty market valuations and a prolonged period without a significant market pullback had some analysts predicting a sell-off. Japan's Nikkei 225 slipped 0.3 percent, while Australia's S&P/ASX 200 lost 0.5 percent.

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

Related Articles