Global Stocks Selloff Stops at Wall Street; Gold, Yen Tick Up

Shares slip, yen and gold gain as Korea tensions escalate

Shares slip, yen and gold gain as Korea tensions escalate

At one point, this change of investment strategy cut $1 trillion from the value of global stock markets.

"A global stock market fund will have its fair share of value and growth companies, unlike -say- the FTSE 100 index which is predominately value-orientated with its bias towards energy, mining and financial, or the Japanese TOPIX which is growth-orientated with a predominance of consumer goods companies".

"Both (PPI measures) were well below consensus and give us no hope that consumer price inflation is going to materially beat expectations", said Chris Weston, chief market strategist at IG Markets.

Reuters data show a 22 per cent perceived chance for a rate increase after the Fed's December meeting.

The gold price rose late Tuesday (August 8) after US President Donald Trump warned that North Korea's threats to the US "will be met with fire and fury".

"There's not a great incentive to buy big", said Lerner of SunTrust Advisory. At 2:19pm BST, the Comex September silver futures contract was up 2.06% or 35 cents to $17.21 an ounce, while spot platinum rose 0.80% or $7.81 to $983.26 an ounce. The stock lost 78 cents to $3.93.

For now, the dollar remained on the back foot, pulling back 0.1 percent to 0.9635 Swiss francs on Friday, after dropping as much as 1.2 percent to a two-week low overnight. According to the Associated Press, South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent. The NYSE Arca Biotechnology Index plunged by 3.4% to its lowest closing level in well over a month.

The modest rebound came at the end of a turbulent week on Wall Street as escalating tensions between the US and North Korea rattled global markets.

Investors instead turned to safe-haven assets such as gold, pushing it to a two-month high, and the Japanese yen JPY= rose.

Earlier, the dollar slipped as low as 108.91 yen, its weakest level since June 14, when the greenback fell as low as 108.81 yen.

"Despite the threat from President Trump yesterday, markets are hoping that tensions will subside during coming weeks". The Russell 2000 index of smaller-company stocks gave up 13.20 points, or 0.9 percent, to 1,396.95.

The dollar was down 0.77 percent against the yen JPY= at 109.21 yen. Especially, after the fall of the previous day, he felt that the market was too lowered, and he therefore took advantage of a technical rebound.

"Many fear that as a U.S. ally, the United Kingdom is also susceptible to being dragged into an unnecessary and unwanted conflict".

At 9:34 a.m. ET (1334 GMT), the Dow Jones Industrial Average was up 54.06 points, or 0.25 percent, at 21,898.07, the S&P 500 was up 5.23 points, or 0.21 percent, at 2,443.44.

This week has seen its biggest rise since June 2016.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in United States crude inventories, leaving prices volatile.

In commodities trading, crude oil futures are slipping $0.10 to $48.49 a barrel after tumbling $0.97 to $48.59 a barrel on Thursday.

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