U.S. stocks fall again on North Korea tensions

Cornelia Mascio
Agosto 13, 2017

Asian markets swooned from the opening bell, and closed in the red.

The CBOE Volatility Index - a measure of investors' expectations for swings in the S&P 500 over the next 30 days - surged Thursday to its highest level since U.S. Election Day. The European markets suffered their heaviest losses in November this week.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday. Mining stocks also turned in a weak performance after Chinese base metal prices fell.

The dollar-denominated RTS index was down 1.5 percent at 1,013 points as of 0834 GMT, taking its year-to-date loss to 12 percent.

S&P 500 e-minis were up 1.5 points, or 0.06 percent, with 300,073 contracts traded.

The Dow Jones Industrial Average rose 14.31 points to close at 21,858.32. With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month.

The price of gold, a universal safe haven asset, has risen almost 3 percent over the past four days, hovering at $1,290 per ounce, its highest since early June.

Shares Snap fell 1.94, or 14%, to 11.83 after the Snapchat parent reported earnings late Thursday that missed analyst forecasts.

Volkswagen finished higher by 0.23 percent after ending discussions with Tata Motors on a potential alliance.

Market bellwether Samsung Electronics Co. backtracked 2.79 percent to 2,231,000 won, and No. 2 chipmaker SK hynix Inc. was down 4.66 percent to 61,400 won. The financial services firm, which is in the middle of breaking up into four parts, plans to list two divisions in 2018.

Kohl's, another department store chain, slumped 8.9 percent after reporting that second-quarter sales dipped 0.9 percent compared with the year-ago period. Anglo American dropped 3.05 percent and Rio Tinto fell 3.15 percent.

Bond prices rose. The yield on the 10-year Treasury fell to 2.20 percent.

The Russell 2000 is up 15.41 points, or 1.1 percent.

On the U.S. economic front, a report released by the Labor Department showed a modest uptick in consumer prices in the United States in the month of July.

The latest United States economic data cemented expectations that inflation will remain subdued amid a robust labour market. Core prices had also been expected to climb by 0.2%.

French inflation held steady in July, as estimated initially, final data from the statistical office Insee showed Friday.

Excluding food and energy prices, core consumer prices still crept up by 0.1% in July, matching the increases seen in the three previous months.

In contrast to the USA market, global equities remained weak.

The Labour Department said that its Consumer Price Index inched up 0.1% last month, pointing to subdued inflation which could make Federal Reserve policy makers cautious regarding another interest rate hike in 2017.

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