Gold Prices Go Up On Rising US-North Korea Tensions

Marco Green
August 12, 2017

Frankfurt's DAX 30 was 0.4 per cent lower at 11,961.60 points.

The Dow Jones Industrial Average fell 0.9 percent to end at 21,844.01, the only close below 22,000 since breaking through that level for the first time August 2.

Fresenius Medical Care (NASDAQ: NXTM) announced a $2 billion agreement to acquire USA medical technology company, NxStage Medical, Inc. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent. It follows June's 0.1 per cent rise.

Trump had "let out a load of nonsense about "fire and fury" failing to grasp the ongoing grave situation".

The Asian country also detailed plans (http://www.marketwatch.com/story/north-korea-details-plan-to-fire-missiles-toward-guam-says-only-absolute-force-will-work-with-trump-2017-08-09) for that threatened missile strike on Guam.

Many world stock markets have hit record or multi-year highs in recent weeks, leaving them vulnerable to a sell-off, and the tensions over North Korea have proved the trigger. "It will not last long", said Seo.

North Korea could just be an excuse for people to cash in winning stocks, especially tech companies like Apple and Facebook.

WALL STREET: U.S. stocks closed lower on Thursday led by technology companies.

Meanwhile, the Russell 2000 index of small-cap stocks finished out the week 2.7% lower, its biggest one-week decline since February 2016.

The escalation of the rhetoric between the USA and North Korea is keeping market participants on their toes and with no fresh economic reports the price action is dictated by the headlines. Futures for the S&P 500 retreated 8.75 points, or 0.4%, to 2,464.25. Humana rose $4.74, or 1.9 percent, to $254.96. Both were coming off record highs.

Euro zone stocks and blue-chips also dropped 0.7 percent, while the miner-heavy FTSE underperformed and was down 0.8 percent.

The common currency had lost about 0.4 percent overnight after news USA job openings surged to a record in June reinforced Friday's robust payrolls data and supported the greenback. This is a share for investors looking for capital growth and willing to accept a higher level of risk. -North Korea tensions and the weak data that further reduced expectations of an interest rate hike in December.

USA and Asian stocks plunged overnight, with investors instead fleeing to traditionally safer assets including German government bonds, among the best-rated and most liquid assets in the world. "I think a few investors are capitulating to it". On the Nasdaq, 1,846 issues fell and 953 advanced favouring decliners.

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. West Texas Intermediate crude closed at $49.26 a barrel. Brent crude, used to price global oils, added 4 cents to $52.74.

Other reports by Click Lancashire

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