Finance

US-North Korea Tensions Cause Market Volatility; Oil Prices Slide — GLOBAL SNAPSHOT

US-North Korea Tensions Cause Market Volatility; Oil Prices Slide — GLOBAL SNAPSHOT

Investor focus now turns to Friday's usa consumer price index data.

The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

The dollar index fell 0.3 percent, with the euro up 0.36 percent to $1.1812. The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56.

"From a geopolitical perspective, we understand why the escalation in tensions will have shaken some of the complacency out of investors", said Eric Wiegand, senior portfolio manager at U.S. Bank Private Client Wealth Management.

In currencies, the yen rose 0.8 percent versus the greenback at 109.2 per dollar, the strongest level for the Japanese currency since mid June. On an annual basis, inflation grew by 1.7%, below the 1.8% that was expected but above the 1.6% from the previous month.

Subdued US inflation has stirred doubts about the chances of another Fed interest rate hike this year, which have weighed on the dollar. Pyongyang has pushed back, saying it will fire four missiles near the U.S. Pacific territory of Guam.

Keeping up his tough talk, U.S. President Donald Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face the consequences, and suggested that his earlier threat to unleash "fire and fury" on North Korea was too mild.

There were fewer signs of anxiousness in the markets Friday.

Gold hovers near two-month highs on N.Korea tensions
In commodities , US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day. Spot gold inched down 0.1 percent to $1,284.64 per ounce as of 0616 GMT, but was set for a weekly gain of over 2 percent.

The jump in the franc had prompted hedge funds to unwind leveraged positions which involved borrowing in the weak Swiss currency and investing the proceeds in the relatively higher-yielding Australian dollar and the Canadian dollar. It's still the highest it's been since May. The sector was the biggest decliner on Thursday. It had gained about 2.8 percent for the week so far. Investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company.

BIG GAINERS: Health care stocks were among the big gainers. Economists had expected prices to rise by 0.2 percent. It also raised its outlook. The stock lost 89 cents to $3.82. Brighthouse Financial shed $1.05, or 1.8 percent, to $57.45.

The dollar index .dxy , which measures the US currency against a basket of other major currencies, fell 0.14 percent.

Among individual shares, Macy's Inc. posted the worst weekly move in the benchmark gauge, dropping 12 percent after a double-digit plunge on second-quarter earnings. Brent crude dipped 5 cents to $52.18 a barrel. Brent crude, used to price worldwide oils, rose 20 cents to $52.10 a barrel in London.

The euro held steady at $1.1776.

BONDS: Bond prices were rose.

The dollar index, which measures the US currency against a basket of major peers, slipped 0.1 per cent as US Treasury yields fell. Britain's FTSE 100 was down 1.1 percent. The index closed at its highest level since November 8, when Trump was elected president.

The South Korean economy accounts for around 1.9% of world GDP, and a severe drop in South Korean GDP ... would have negative effects on key trade partners.


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