USA stocks close lower, snapping Dow's 10-day winning streak
Aug 12 2017 by Johnny Bowman
The price of gold, a safe-haven asset, hit its highest levels in two months as North Korea and the United States exchanged more threats, with North Korea outlining detailed plans for a missile strike near the Pacific territory of Guam. South Korea's Kospi fell 0.2 percent.
U.S. President Donald Trump, in his latest warning to North Korea, said military solutions were "fully in place" and referred to American weapons as being "locked and loaded" should the nuclear-armed nation act "unwisely".
USD/JPY changed hands at 109.06, down 0.12%, while AUD/USD traded at 0.7869, down 0.08%.
The Swiss franc, another safe-haven, failed to maintain momentum from earlier days, losing ground relative to the euro and was last broadly flat versus the dollar after dollar/franc fell to a fresh two-week low 0.9582 earlier in the day.
The U.S. blue-chip index is down 1.1% this week and the S&P 500 is 1.6% lower, facing its worst weekly performance since November.
ANALYST'S TAKE: The U.S.jobs figure "was through the roof" and the NFIB survey "painted a much better picture for the U.S. economy than most believed", Stephen Innes of OANDA said in a report.
The Chinese volatility gauge jumped by the most since January 2016 to its highest level in more than seven months.
"The war of words taking place between the United States and North Korea at the moment, which includes very real threats of action, is taking its toll on investor sentiment".
North Korea "will be met with fire and fury" if it keeps threatening the US, Trump told reporters at the Trump National Golf Club in Bedminster, New Jersey, according to media reports.
Worries about increased U.S.
Stocks ended more than one percent down in Seoul while the won slumped to a three-week low against the dollar as the USA president and South Korea's volatile neighbour dramatically ramped up their war of words.
World markets slide for third day on political tension
The U.S. dollar was down 0.3% at 110.01 yen which hurt the share prices of motor-vehicle makers, technology companies and banks. While the French CAC 40 Index fell by 0.6%, the German DAX Index slumped by 1.1% and the UK's FTSE 100 Index plunged by 1.4%.
The dollar extended losses against the yen to hit a new two-month low.
The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56.
Among economic data, the U.S. Labor Department is likely to report that initial jobless claims remained unchanged at 240,000 for the week ended August 5.
US producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.
The Federal Reserve's hint about unwinding balance sheets, the possibility of the European Central Bank tapering stimulus and the looming debate about the USA debt ceiling in the fall challenge the market's recent performance, Mr. Baele said.
Global benchmark Brent lost 0.7 percent to $51.53, after Thursday's 1.5 percent drop.
In early trading, France's CAC 40 fell 1.5 percent to 5,141.37 points and Germany's DAX lost 1.2 percent to 12,144.54.
S&P 500 e-minis were down 10.25 points, or 0.41 percent, with 180,193 contracts traded.
Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 8.6 percent.
In oil, the price of Brent crude sunk by 0.5% to 51.65 USA dollars a barrel amid concerns about over supply in the market.