Political tensions continue to weigh on world stocks

Political tensions continue to weigh on world stocks

Political tensions continue to weigh on world stocks

Mr Trump earlier this week said North Korea would be met with "fire and fury" if it continued to threaten the US.

"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.

The comments follow reports that North Korea has mastered a crucial technology needed to strike the United States with a nuclear missile.

The strong earnings season helped propel USA stocks to record highs.

Shares of Snapchat-parent Snap Inc.(SNAP) slid 12% a day after its earnings missed forecasts (http://www.marketwatch.com/story/snap-ceos-promise-cant-overcome-declining-ad-rates-stock-heads-toward-new-lows-after-earnings-2017-08-10), and the social-messaging company disclosed that average ad prices fell in the second quarter.

"Should the North Korea situation develop it may just prove to be the catalyst to push the institutional world to commit flows back to this asset class on a sustained basis", he said.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index fell 39.02 points, or 0.26 percent, to end the day at 15,217.33.

Military solutions 'locked and loaded' against North Korea threat
What's much less certain, however, is whether the North's missiles can inflict serious damage once they reach Guam . But residents are increasingly anxious over Washington's escalating war of words with North Korea .

Avis Budget Group CAR.O fell 7.94 percent as the car rental company cut its full-year profit view.

A widely followed measure of market anxiety .VIX jumped late in the day to close at its highest in almost a month. Germany's DAX Index fell 0.6 percent, while the UK's FTSE 100 Index retreated 1.2 percent, and France's CAC 40 Index slid 1.4 percent.

U.S. ECONOMY: Employers posted a record number of open jobs in June while a survey of small businesses showed optimism improving. That "looks high enough to be consistent with a 5 percent-plus pace for real GDP growth", said Jim O'Sullivan of High Frequency Economics in a report.

However, New York Fed President William Dudley said on Thursday he expected inflation to rise and suggested that the central bank was on track to raise rates once more this year. It should be kept in mind that the inflation figures have the ability to impact the prospects of higher U.S. interest rates, and this will possibly have a direct correlation to the value of Gold. Still, he said, "the Washington, D.C., bedlam and North Korea's saber-rattling is muddying the broader landscape".

But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar. The euro edged down to $1.1726 from $1.1751.

The Canadian dollar was trading at an average price of 78.67 cents United States, down 0.04 of a USA cent. It added 39 cents to $49.56 a barrel overnight. Brent crude, used to price worldwide oils, gave up 29 cents to $51.85 in London. Brent crude, the worldwide standard, lost 23 cents to $52.14 in London.

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