Global stocks shudder on Trump warnings to North Korea

Cornelia Mascio
Agosto 13, 2017

The Dow Jones industrial average fell 0.17 percent, with the tech-heavy Nasdaq composite index declining 0.28 percent. They outweighed gains in health care stocks and elsewhere.

But while investors appeared to favor safe-haven assets, some bargain seekers helped Wall Street's three major indexes pare losses.

"We're not very oversold yet so the market still has more downside left to it".

The dollar weakened after news that USA 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. Several hours later, North Korea said it was considering a strike that would create "an enveloping fire" around Guam, the Pacific island where the United States stations military personnel.

Valeant Pharmaceuticals International, Inc. lost 1.58 Canadian dollars (1.24 US dollars), or 9.4 percent, to 17.89 Canadian dollars (14.09 dollars), after the company said its subsidiaries in Australia were the subject of a tax audit. While the UK's FTSE 100 Index slid by 0.6%, the German DAX Index slumped by 1.1% and the French CAC 40 Index tumbled by 1.4%.

About 6.22 billion shares changed hands on US stock exchanges, slightly above the 6.15 billion average for the last 20 sessions.

The S&P 500 dropped the most since May and MSCI's gauge of stocks across the globe lost 1.1 percent in its third straight day of declines, as it pulled further back from all-time highs. Natural gas was also flat at $2.98 per 1,000 cubic feet. Its shares slid $9.77, or 5.3 percent, to $174.02. On the Nasdaq, 1,846 issues fell and 953 advanced favoring decliners. The stock lost $2.81 to $9.03.

Gold royalty and streaming company Franco-Nevada Corp. jumped 3.57, or 3.9 percent, to 95.65 Canadian dollars (75.33 dollars) after reporting quarterly results late on Tuesday. Yields on British and European bonds, which move inversely to the price, were lower on Wednesday morning. July's 0.1 percent increase in consumer prices suggests that the Federal Reserve may be less likely to raise interest rates next month. Regeneron Pharmaceuticals led the pack, adding $4.47, or 1 percent, to $474.15.

Benchmark U.S. crude rose 23 cents to settle at $48.82 a barrel on the on the New York Mercantile Exchange.

Oil prices edged higher after a report showed United States refineries processed record amounts of crude in the latest week, eating into inventories, although a surprise jump in gasoline stockpiles limited gains.

Gold added $3.90 to settle at $1,294 an ounce.

In other energy futures trading, wholesale gasoline rose 1 cent to $1.61 a gallon, while heating oil was little changed at $1.63 a gallon. It was last up 1.1 per cent at 1.1321 per euro. Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce.

German bond yields fell, gold and the Japanese yen surged and the leveraged bets on higher-yielding currencies such as the Australian dollar took a beating. Copper fell 2 cents to $2.93 a pound.

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