Finance

FTSE falls as North Korea details strike plan

FTSE falls as North Korea details strike plan

Trump issued a new warning to Pyongyang on Friday, saying in a tweet: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

Stocks closed slightly lower Wednesday, making up much of the ground they lost earlier following a rare batch of earnings disappointments by Walt Disney and other big companies. They are looking for confirmation that the Fed is sticking with plans for a possible December interest rate hike.

ASIA'S DAY: The earlier Asian session was heavily influenced by the sabre-rattling between the USA and North Korea.

"There's not a great incentive to buy big", said Lerner of SunTrust Advisory. The Dow slumped by 1.1%, while the Nasdaq and the S&P 500 tumbled by 1.5% and 1.4%, respectively.

The Dow Jones Industrial Average climbed 0.08% on Friday, Aug. 11, the S&P 500 gained 0.13%, and the Nasdaq added 0.64%. USA gold futures gained 0.50 percent to $1,296.60 an ounce.

European markets also slid in early trade after Wall Street indices suffered their biggest losses in almost three months Thursday, while the dollar struggled to recover from eight-week lows below 109 yen as investors fled to safe haven assets.

In Asia, benchmarks in Hong Kong and South Korea - which had been one of the best performers of 2017 - closed down 2% and 1.7% respectively, Friday, putting the week's drop at 2.5% and 3.2%.

The pan-European FTSEurofirst 300 index .fteu3 lost 1.01 percent and MSCI's gauge of stocks across the globe .miwd00000pus shed 0.12 percent.

Pakistan violates ceasefire in Poonch, 45-year-old woman killed
One woman was killed in Pakistan shelling along the Line of Control in Jammu and Kashmir's Medhar sector early on Saturday. According to defence ministry sources, the Pakistani troops resorted to heavy unprovoked firing at about 5 am.

"European shares are trading once again lower. continuing their slide on the back of ever more increasing tensions between North Korea and the U.S.", added analyst Markus Huber at City of London Markets. It earlier hit its highest since June 7 at $1,291.86.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption investors there will repatriate funds should a crisis eventuate.

In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 added 0.2 percent.

The recent resilience of data on the U.S. economy has not dampened the latest climb, despite depressing prices earlier in the week as reports returned high employment figures ahead of further United States inflation information this week.

Market sentiment remained largely in risk-off mood on Thursday as the latest escalation of tension between North Korea and the United States showed no sign of dissipating.

Shares of Kohl's were down 2.05 percent in premarket trading, while Macy's fell 0.91 percent after the department store operators reported a fall in sales. MetLife fell 75 cents, or 1.6 percent, to $47.56, while Charles Schwab slid 69 cents, or 1.6 percent, to $41.33.

The Japanese yen last strengthened 0.03 per cent versus the greenback at 109.22 per dollar. "If you look at the gold price after the CPI (inflation) data, it tells you that the Fed is not going to be in any rush to increase the interest rate this year", said Naeem Aslam, chief market analyst at Think Markets.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday.