FTSE sell-off gathers strength on North Korea fears

FTSE sell-off gathers strength on North Korea fears

FTSE sell-off gathers strength on North Korea fears

"The escalation of the geopolitical situation between the US and North Korea is beginning to rattle investors' nerves as was witnessed in the VIX index yesterday", said Peter Cardillo, chief market economist at First Standard Financial.

The Dow Jones Industrial Average was up 0.18%, the S&P 500 gained 0.08%, and the Nasdaq added 0.1%.

In the first four days of the week, the Standard & Poor's 500 index swung from marking its latest record high to posting its biggest single-day drop in almost three months.

The Nasdaq Composite was down 115.35 points, or 1.82 percent, at 6,236.98.

ASIA'S DAY: Earlier, Asia bore the brunt of the mounting geopolitical uncertainty, with South Korea's Kospi index closing down 1.7 percent at 2,319.71 and Hong Kong's Hang Seng ending 2 percent lower at 26,883.51.

"It's been a bit of a roller coaster this week, with all the rhetoric between the U.S. and North Korea", said Jeff Kravetz, regional investment strategist at U.S. Bank Wealth Management. The stock fell $166 to $1,882.94.

London's benchmark FTSE 100 index shed 0.9 per cent to 7,323.45 points.

Materials, home to gold producers and other resource-based companies, was the only gainer among the index's 10 main sectors and was up 0.6 percent.

Giroud Header Seals Arsenal Win in Season-Opening Thriller
Danny Welbeck gave the Gunners a lifeline with a much-needed goal on the stroke of half-time. It is a very specific French players at Lyon.

MARKETS OVERSEAS: In Europe, Germany's DAX was down 1.1 percent, while France's CAC 40 fell 1.4 percent.

There were fewer signs of anxiousness in the markets Friday.

Macy's dropped 4.2 percent as it reported second-quarter revenues fell 5.4 percent to $5.6 billion, another sign of the travails facing department stores. It's still the highest it's been since May.

The weaker-than-expected consumer price data in July, which pointed to benign inflation, could cause the Federal Reserve to hold off from raising rates again this year.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month.

"This inflation data for the month was not good". The Fed, which raised its key interest rate in March and June, has signaled it plans a third rate increase before the end of this year.

"U.S. -North Korean military tensions continued to dominate sentiment, pushing U.S. bond yields down and increasing the price of gold", analysts at VTB Capital said in a note.

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49.

Related news