Markets slide, dollar slumps as North Korea fears spike

Markets slide, dollar slumps as North Korea fears spike

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States.

The Standard & Poor's 500 index dropped 35.81 points, or 1.4 percent, to 2,438.21. Kohl's shares are down 15% in the year to date, compared to a 10.5% gain for the S&P 500 [s:spx].

"This selloff could be more than just a North Korea induced blip on the screen", Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a report on Friday.

US crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent.

The Nasdaq is down 134.69 points, or 2.1 percent.

Macy's (M.N) shares closed down 10.2 percent and Kohl's (KSS.N) fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

Flight to safety has helped lift the Japanese yen and gold prices, after North Korean leader Kim Jong Un made an explicit threat on Wednesday to strike a USA military base in Guam. Viacom slid 60 cents, or 1.9 percent, to $30.17.

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce. Brent crude, used to price worldwide oils, added 4 cents to $52.74.

Against the euro, the Swiss currency was little changed at 1.1328 per euro.

In an inversion of the curve, the spot VIX rose above VIX futures, meaning traders are paying more for protection against a sudden sharp drop on the S&P than for protection in the future. Netflix was down 1.8 per cent.

"Excluding a war variable, KOSPI's support level will be in the low 2,300-point range, but it could be broken should worries about a possible war on the Korean Peninsular deepen", Cape Investment & Securities analyst Kim Yu-gyeom said. The September copper contract was down two cents to US$2.91 a pound.

The dollar strengthened against the Swiss franc on Thursday, buying 0.9642 franc compared to 0.9636 franc late Wednesday in NY.

The Dow Jones industrial average lost 71 points, or 0.3 percent, to 22,013.

The Labor Department also said unit labor costs rose by 0.6 percent in the second quarter following an upwardly revised 5.4 percent spike in the first quarter.

United Kingdom mid-cap Dixons Carphone was the worst-performing on the STOXX, falling 7.6 percent after a top-rated Exane BNP Paribas analyst cut the retailer by two notches to "underperform", citing concerns about its mobile business.

The dollar index, which measures the U.S. currency against a basket of major peers, slipped 0.1 percent as U.S. Treasury yields fell.

In Frankfurt, chemical distributor Brenntag sank 6.81 percent after its second-quarter results fell short of market expectations.

Australian shares were down 1.3 percent, set for a weekly loss of 0.6 percent and Chinese and Hong Kong bluechips lost 1.6 percent and 1.9 per cent respectively.

The Australian dollar, sensitive to shifts in risk sentiment, was down 0.5 percent at $0.7876.

Artículos relacionados

  • Alvaro Morata needs more time - Antonio Conte

    Alvaro Morata needs more time - Antonio Conte

    How far do you go with what they are asking for? 'Honestly, if you have to give your evaluation on the card (on paper) it's right. The Clarets have just sold Andre Gray to Watford for £18 million to rob Dyche of his key striker on the eve of the new campaign.
    Odds a slap in the face — Jones vs Lesnar

    Odds a slap in the face — Jones vs Lesnar

    However, the 30-year-old called out former UFC heavyweight champion Brock Lesnar and challenged him. Minutes later, Lesnar told The Associated Press,"Be careful what you wish for, young man".
    Kenya's opposition rejects verdict that presidential election was fair

    Kenya's opposition rejects verdict that presidential election was fair

    They appealed to political parties, candidates and their supporters to be patient as the tallying process reach a critical phase. He says he has proof votes were tampered with, based on 50 pages of computer logs he released on his Facebook page.
  • Arsenal beat Leicester 4-3 in thrilling Premier League opener — Football

    Arsenal beat Leicester 4-3 in thrilling Premier League opener — Football

    It was a tough season for Arsenal fans as Arsene Wenger's men failed to qualify for the Champions League. Rob Holding has been superb since being drafted in and this season will be a huge one for the Englishman.
    Nadal Ousted by Canadian Teenager, Federer Through to Montreal QFs

    Nadal Ousted by Canadian Teenager, Federer Through to Montreal QFs

    He said he grew up dreaming of playing the likes of Nadal and Roger Federer , and announced, "You know, my dream came true today". Fourth seed Alexander Zverev extended his winning streak on hard courts to seven matches as he beat Nick Kyrgios 6-4 6-3.
    Patriots Become 1st NFL Franchise to Buy a Team Plane

    Patriots Become 1st NFL Franchise to Buy a Team Plane

    Sources with knowledge of some NFL teams' charter travel deals say 10 roundtrip flights per season can cost as much as $4 million. As the Patriots opened their preseason schedule last night against the Jaguars, all four Super Bowl banners were down.
  • Postal vote on gay marriage triggers furore

    Postal vote on gay marriage triggers furore

    That's a 230 percent increase compared to last week, indicating the discussion around the postal vote is having a serious impact. After the song has ended, Minchin implores Australians to counter the "horrid" plebiscite and "drown the mofos in "yes" votes".
    Cowboys' Ezekiel Elliott suspended for 6 games

    Cowboys' Ezekiel Elliott suspended for 6 games

    Harvey said an example was proof that photographs were taken by Thompson the same day she alleged that she was injured by Elliott. According to ESPN, the suspension also voids the guarantees in his four-year - almost $25m (£19.2) contract - with the Cowboys .
    Trump threatens Venezuela with 'military option'

    Trump threatens Venezuela with 'military option'

    Gulf Coast which process Venezuelan crude oil make up "a significant portion, almost 10 percent, of USA imports". The remarks came shortly after Maduro forcefully warned the USA president that Venezuela "will never give in".
  • Merson:

    Merson: "Arsenal would let Sanchez go to PSG tomorrow"

    But of course at the moment I have 33 players [in the squad] and it's very hard to manage, on a daily basis, such a high number. All our players got a decent number of minutes of good competition, so overall the preparation of the squad looks good.
    Chelsea vs Burnley 12 Aug 2017: EPL Preview and Predictions

    Chelsea vs Burnley 12 Aug 2017: EPL Preview and Predictions

    Antonio Conte has made no secret of his desire to sign more players with the season just days away from starting. But our job is to try to bring the football club back to that stature.
    Where to buy solar eclipse glasses in Richmond

    Where to buy solar eclipse glasses in Richmond

    Brookhaven's emergency Management Coordinator advises taking adequate precautions when viewing the near total eclipse . Her husband told her of the event, and she has always been interested in things happening in the sky.