Euro Falls Amid Risk Aversion On Trump's Comments

Closing Indexes Summary August 9

Closing Indexes Summary August 9

"There is a continuation of flight to the safe havens after remarks on Thursday evening from Trump about North Korea", said Quantitative Commodity Research consultant Peter Fertig.

Silver too gained Rs 70 to Rs 40,200 per kg on increased offtake by industrial units and coin makers.

Gartman's comments follow Bridgewater Associates founder Ray Dalio's gold recommendation: "We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit", Dalio wrote in a LinkedIn blog post.

Gold held steady at two-month high with spot gold rising 0.1 percent to $1,287.83 per ounce, putting the precious metal on pace for its biggest weekly gains since April.

The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday. But by the end of the day, traders appeared to take the geopolitical drama in stride.

The pan-European FTSEurofirst 300 index lost 1.01 percent and MSCI's gauge of stocks across the globe shed 0.26 percent for a weekly loss of 1.6 percent, the largest since the week to November 4.

The market was waiting f or USA consumer inflation data on Friday that would offer more clues about future Fed decisions.

Markets also awaited U.S. inflation figures, as measured by the Consumer Price Index (CPI), which is set to signal how fast USA interest rates will rise.

In Toronto, the composite index S&P/TSX has lost 143,08 points, or 0.9 %, to close at 15 074,25 points, the decline being nearly generalized to all sectors.

A small rise in a measure of USA consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favourable to equity investors.

The pan-European STOXX 600 was down 0.7% at closing, France's CAC 40 fell 1.4% after a vehicle hit a group of soldiers in Paris in what is thought to have been a deliberate act, and a fall in bond yields saw Germany's DAX down 1.1%. Canada's 10-year yield on Friday touched its lowest intraday level in almost a month at 1.837 percent. Banks and retail chains were also among the big decliners.

Wall Street was poised for a soft opening with S&P futures and Dow futures both down 0.2 percent. The stock lost 78 cents to $3.93. South Korea's Kospi lost 1.7%, while Hong Kong's Hang Seng slid 2%.

CURRENCIES: The euro slipped 0.1 percent to $1.1176 while the dollar was steady at 109.20 yen.

Benchmark U.S. crude was down 21 cents to $48.38 a barrel on the New York Mercantile Exchange. U.S. PPI came in at -0.1%, below the 0.1% forecast and previous read. Japan was closed on a public holiday.

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