North Korea tensions continue to weigh on global stocks

North Korea tensions continue to weigh on global stocks

North Korea tensions continue to weigh on global stocks

The Dow Jones Industrial Average rose 43 points, or 0.2%, to 21,885, led by Apple Inc. The Nasdaq composite lost 37 points, or 0.6 percent, to 6,332. Australia's S&P/ASX 200 edged down almost 0.1 per cent to 5,760.90, while South Korea's Kospi fell 0.5 per cent to 2,357.84.

"Given the great run we've had, seems like some sort of pullback wouldn't be surprising", said Michael Baele, managing director of investments at U.S. Bank Private Wealth Management. "And while risks remain elevated from a geopolitical perspective, valuations are not necessarily excessive, though full". "I think a few investors are in the process of surrender", one can read in a text to The canadian Press. Is that a reason to be?

It also came amid heightened tensions between North Korea and the United States.

Brewing tensions between the USA and North Korea put investors in a selling mood again Thursday, dragging US stocks lower for the third day in a row. Late in the session, President Donald Trump said perhaps his threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough". Both the core and headline rates are expected to have risen by 0.2 percent during July. The Nasdaq is on track for a weekly loss of 1.5%, its worst since June.

Technology stocks, the biggest gainers this year, led Thursday's market slide. Japan and South Korea vowed a strong reaction if the North were to go through with the plan.

The Chicago Board Options Exchange's Volatility Index, considered one of the best gauges of fear in the market, hit its highest level since May on Thursday.

On the US economic front, a report released by the Labor Department showed a modest uptick in consumer prices in the U.S.in the month of July.

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Down 11-7, after blowing a 5-0 lead, the Tigers scored three times in the bottom of the eighth to make a game of it. Rockies center fielder Charlie Blackmon went 4 for 5 with two runs scored and two stolen bases.

THE QUOTE: "Inflation - or lack of -- has been an ongoing problem for the central bank and some policy makers have voiced concerns about this in recent months as they consider whether to raise interest rates again this year", said Craig Erlam, senior market analyst at OANDA.

Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day.

UNDERCOOKED: Blue Apron slumped 18.2 percent after the meal kit seller reported a sequential decline in customers in the second quarter due to a planned reduction in marketing. Its shares slid $9.77, or 5.3 percent, to $174.02. Some say expectations for its server-chip business were just too high (http://www.marketwatch.com/story/nvidia-stock-could-pause-as-server-growth-slows-down-2017-08-10). The stock fell 85 cents to $12.76.

In contrast to the US market, global equities remained weak. Simmering tensions between the USA and North Korea were also weighing on the market.

An editorial in China's state-run Global Times (http://www.globaltimes.cn/content/1060791.shtml), published late Thursday local time, added to the pressure on Asian markets.

"What has changed this time is that the scary threats and war of words between the U.S. 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, as quoted by Reuters. Silver also rose, gaining 43 cents, or 2.6 percent, to $16.82 an ounce. Gold and bond prices were headed higher.

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