Trump Rhetoric Sinks Global Stocks

Trump Rhetoric Sinks Global Stocks

"The slight bias to the upside (in stocks) is a result of the CPI number".

"The market is trying to interpret the CPI data as somewhat positive because it is anticipating that the Fed will be on hold not only in September but also possibly in December", said Robert Pavlik, chief market strategist at Boston Private Wealth.

President Donald Trump told North Korea on Friday that the US military was "locked and loaded", while Pyongyang accused him of driving the Korean peninsula to the brink of nuclear war.

President Donald Trump's warning of "fire and fury" in response to additional provocations by North Korea is not being received lightly by senior lawmakers.

This gave investors some hope at the end of a jittery week, which could show the S&P's biggest weekly loss in more than four months, primarily due to a continuous exchange of threats between the United States and North Korea.

The Dow and S&P 500 inched higher on the day but they both posted their largest weekly percentage drops since late March.

"There was some skittishness earlier but then some buyers stepped in", he said. South Korea's Kospi fell 0.5 percent. Eastern time. The Dow Jones industrial average slid 120 points, or 0.5 percent, to 21,928.

The euro was down 0.3 percent at just over $1.17 and nearing a two-week low, while the New Zealand dollar tumbled a full 1 percent as its central bank head bluntly said he wanted it lower. It has fallen more than 1 percent on only three days this year.

The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the election. Chinese blue chips lost 1.6%, while Hong Kong's Hang Seng was 1.9% lower.

"Pretty remarkable, perhaps even extraordinary, considering", said Tim Ash, strategist at fund manager BlueBay.

The markets may benefit from bargain hunting, as some traders look to pick up stocks at reduced levels following the pullback seen over the past few sessions.

Stocks took a hit for a third straight day Thursday as North Korea's nuclear threats seemed again to roil the markets.

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"A global stock market fund will have its fair share of value and growth companies, unlike - say - the FTSE 100 index, which is predominately value-orientated, with its bias towards energy, mining and financial, or the Japanese TOPIX, which is growth-orientated, with a predominance of consumer goods companies".

USA stocks closed in the green on Friday, but the major indexes posted sharp losses for the week.

"You'd need to see something more tangible than just rhetoric for a broader pullback", said Richard Steinberg, managing director at HSW Advisors, a finance team within HighTower Advisors, in NY.

The dollar index, which measures against a basket of currencies, fell 0.05 percent.

Dow e-minis were down 24 points, or 0.11 percent, with 22,166 contracts changing hands.

Later in the session dollar traders will be busy monitoring producer prices in the USA, ahead of the key inflation figure tomorrow.

Benchmark U.S. 10-year notes last rose 6/32 in price to yield 2.1905 percent, from 2.211 percent late on Thursday.

The 30-year Treasury bond rose 31/32 in price to yield 2.8191 per cent, from 2.867 per cent late on Tuesday.

Gold prices on Thursday finished at their highest level in more than two months Thursday, adding to the previous session's sharp daily rise, as simmering North Korean tensions buoyed haven bids.

Shiseido shares soared 13.77 percent to 4,420 yen after the makeup company upgraded its annual sales and profit forecasts, and announced robust earnings for the January-June period.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in USA crude inventories, leaving prices volatile.