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

Closing Indexes Summary August 10

Closing Indexes Summary August 10

The dollar skidded to an eight-week low against the yen as escalating tensions between the United States and North Korea triggered yet more investor flight to safety.

If North Korea launches an attack that threatens the United States, China should stay neutral, but if the U.S. attacks first and tries to overthrow North Korea's government, China will stop them, a Chinese state-run newspaper said on Friday.

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. It soared over two per cent in the previous two sessions, and is set for a weekly gain of 2.25 per cent.

The negative headlines provided many investors with an opportunity to pocket some of their recent gains following a string of record highs fueled by strong corporate earnings.

"Investors tend to be more cautious ahead of economic data, especially when the prices are high". But for the week the S&P 500 lost 1.3 percent, its worst weekly showing since March. The index had its biggest drop since mid-May a day earlier.

The Dow Jones Industrial Average rose 43 points, or 0.2%, to 21,885, led by Apple Inc. The Nasdaq composite lost 0.2 percent, to 6,370.46.

The dollar index .DXY fell 0.32 percent, with the euro up 0.42 percent to $1.1819. It has been the leading S&P gainer so far this year, making it particularly vulnerable to a decline. The S&P 500 is up 9 percent, while the Dow is up 10.6 percent. -North Korea tensions and the weak data that further reduced expectations of a Fed rate hike in December.

"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.

Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific territory of Guam.

Trump, whose threat this week to bring "fire and fury" was dismissed by North Korea, said Thursday that statement might not have been "tough enough".

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

Bolt fails to finish as GB stun in relay
Usain Bolt successfully steered his Jamaica team through to the final of the men's 4x100m, setting up the last race of his career. In contrast to these images are some that reflect utter pride at the accomplishment that has just occurred on the track.

Still, there were fewer signs of anxiousness in the markets Friday. It's still the highest it's been since May.

The market was also waiting for data that would offer clues about the extent to which the strengthening US labour market is spilling over into inflation.

New York Federal Reserve President William Dudley expects sluggish USA inflation to rise over the next several months. "But we're in a low inflationary environment, which can help valuations remain elevated for longer than they would otherwise".

Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively. It is poised to end the week down 1.9 per cent.

J.C. Penney slumped as much as 18.25 percent to a record low after the retailer reported a bigger-than-expected quarterly loss. The company also said sales at its established stores declined for the fourth straight quarter.

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

In commodities trading, crude oil futures are slipping $0.10 to $48.49 a barrel after tumbling $0.97 to $48.59 a barrel on Thursday. Brent crude, used to price worldwide oils, gave up 22 cents to $51.92 in London. It is heading for a 2.5 per cent drop for the week.

The dollar slipped to 109.04 yen from 109.26 late Thursday. The euro edged down to $1.1726 from $1.1751.

With the rhetoric rumbling on, Europe's top-rated German bond yield held near six-week lows. Britain's FTSE 100 was down 1.1 percent.

The last time the S&P closed down more than 1 percent was May 17 when it fell 1.8 percent. Australia's S&P/ASX 200 dropped 1.2 percent. Japan was closed on a public holiday.

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