Wall Street dives after Trump's 'fire and fury' warning to North Korea

Wall Street dives after Trump's 'fire and fury' warning to North Korea

In Asia, share markets remained pressured on Friday in morning session after US-North Korea geopolitical tensions came to the fore once again.

The VIX, a measure of Wall Street volatility, spiked more than 30% Thursday. "The gold market shows various signs of ambivalence and we believe that this pattern will continue into the foreseeable future", Norbert Rucker, head of macro & commodity research at Julius Baer, said in a note. Other safe havens for investors were the Swiss franc and gold. The remarks, following North Korea's earlier revelation of a plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, gave investors further incentive to take to the sidelines at least in stock markets.

"A pullback is good so the market doesn't get unidirectional. If you think this is just rattling sabers, and it's just words, then you could view this as a buying opportunity".

Dow e-minis were down 24 points, or 0.11 percent, with 22,166 contracts changing hands. But for the week the S&P 500 lost 1.3 percent, its worst weekly showing since March. "Risk aversion is still very much a concern for markets", said Shaun Osborne, chief currency strategist at Scotiabank in Toronto. "That did temporarily shake investors' complacency, but we think markets are ready to move higher in the back half of the year, and earnings and economic data are going to drive that". The S&P 500 is up 9 percent, while the Dow is up 10.6 percent.

All three US stock market indices were down Wednesday morning.

The CBOE Volatility Index, the most widely followed barometer of expected near-term USA stock market volatility, hit its highest mark since November 8, when Mr Trump was elected President of the US. It slipped Friday but was still on track to end the week up around 50%.

"Results have been fairly OK, but the reaction to the results has been on the soft side. which perhaps suggests investors are increasingly nervous that valuations are getting to unsustainable levels", said DNB's Mr Harper.

Shares of Snapchat parent Snap fell 12% after it reported earnings late Thursday that missed analyst forecasts.

"The direction in global equities will likely play a major role in the yen's direction today, while the market will also be interested to see what comes of US CPI data".

The biggest fallers were Standard Life down 16p to 410.8p, Rio Tinto down 109.5p to 3,370p, Old Mutual down 6.2p to 195.3p, Anglo American down 39p to 1,238.5p. Shanghai's main index also tumbled 1.6 percent to 3,208.54 while Australia's S&P/ASX 200 dropped 1.2 percent to 5,693.10. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped 4.2 basis points to 2.241 percent.

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