Dow loses more than 100 points amid North Korea tensions

Dow loses more than 100 points amid North Korea tensions

Dow loses more than 100 points amid North Korea tensions

A statement from the North Korean military called President Donald Trump's warning that the communist nation would face "fire and fury" if it continued its provocations a "load of nonsense". North Korea has since threatened to launch missiles at the USA territory of Guam, and the country previously threatened "all-out war, wiping out all the strongholds of enemies, including the US mainland". "I don't think anyone is going to know the result until it's all over, it has really turned around, and that does cause uncertainty", Williamson said.

The focus on North Korea largely overshadowed a Labor Department report showing an unexpected drop in U.S. producer prices in the month of July.

The Labor Department said its consumer price index inched up by 0.1% in July after coming in unchanged in June. Economists had expected another 0.1% uptick. Yields on bonds move inversely to their price.

The rhetoric, which began late Tuesday and continued into Friday, interrupted stocks' march higher and cracked the calm that has enveloped the market for months.

Railroad stocks have shown a strong move to the upside on the day, driving the Dow Jones Railroads Index up by 1.3%.

"Since these are the stocks that have been in the spotlight the most, they tend to have the most volatility upwards and downwards", said Chris Bertelsen, chief investment officer of Aviance Capital Management in Sarasota, Florida.

Significant strength is also visible among computer hardware stocks, as reflected by the 1.1% advance by the NYSE Arca Computer Hardware Index. The strength in the sector came amid a jump in the price of gold.

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In commodities, Crude failed to hold the 50 per barrel level, falling almost 2% topping at $50.22 earlier in the session.

On the currency front, the US dollar is trading at 108.82 yen compared to the 109.20 yen it fetched at the close of NY trading on Thursday. Against the euro, the dollar is valued at USD1.826 compared to yesterday's USD1.1772.

US stocks rose Friday but still notched their biggest weekly loss in months, as investors were shaken by disappointing earnings results and an escalation of threats between the USA and North Korea. The Japanese markets were closed for a holiday.

Overnight, Wall Street closed sharply lower after Trump, with fiery rhetoric, warned Pyongyang against attacking Guam or United States allies after it disclosed plans to fire missiles over Japan to land near the U.S. Pacific territory.

An hour after trading opened this morning, the S&P/NZX50 index was down 79.2 points, or 1 per cent, to 7,710.51. Hong Kong's Hang Seng Index fell 1.22%.

Australian shares fell to near three-week lows in a broad-based selloff.

Market analysts expect that the pullback in stocks due to the increasingly aggressive tone in exchanges between Washington and Pyongyang will continue, although investors hope that the selling will not escalate to a correction - a decline of 10 percent or more. Nigerian oil production rose by 34,300 bpd to 1.748 million bpd, while Saudi Arabia's went up by 31,800 bpd to 10.067 million bpd. On the mainland, the Shanghai Composite declined 0.68% and the Shenzhen Composite shed 0.52%.

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