TSX closes 143 points lower, gold rises amid US-North Korean tensions

TSX closes 143 points lower, gold rises amid US-North Korean tensions

TSX closes 143 points lower, gold rises amid US-North Korean tensions

Another source of support to bullion was data showing US producer prices unexpectedly fell in July, pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

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.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose 0.14% to $1,281.06 a troy ounce.

A separate report from the Labor Department showed an unexpected uptick in initial jobless claims in the week ended August 5th.

The Labor Department said its producer price index for final demand edged down by 0.1% in July after inching up by 0.1% in June. Economists had expected prices to rise by 0.2%.

The smaller than expected increase in consumer prices has led to optimism that the Federal Reserve will not be in a hurry to raise interest rates.

The Dow closed down 205 points Thursday, in its biggest decline since May 17, after U.S. President Donald Trump rejected criticism that his threats to release "fire and fury" had been too inflammatory. The Japanese markets were closed for a holiday.

"What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney. "Hopefully Kim Jong Un will find another path!"

Stocks Fall for Third Straight Day as North Korea Tensions Percolate
In Europe, regional bourses have opened down and have continued in the same direction ahead of the open stateside. The Standard & Poor's 500 index fell less than a point to 2,474, making up much of the ground it lost earlier.

Financials .SPSY fell the most, down about 1 percent. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%.

"The direction in global equities will likely play a major role in the yen's direction today, while the market will also be interested to see what comes of US CPI data".

The influential financial stocks were among the biggest drags on the index, with Royal Bank of Canada down 1.5 percent to C$92.88, and Manulife Financial Corp falling 4.7 per cent to C$24.43, its largest drop since early August a year ago.

The yield on USA 10-year Treasurys slid to 2.199% Friday from 2.211% Thursday.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.

The dollar extended losses against the yen to hit a new two-month low. Germany's DAX Index fell 0.6%, the UK's FTSE 100 Index retreated 1.2% and France's CAC 40 Index slid 1.4%.

In the bond market, treasuries are extending the notable upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.5 basis points at 2.226 percent.

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