North Korea tensions send dollar to eight-week low vs. yen

Dow goes for 10 record highs in a row

Dow goes for 10 record highs in a row

Investors flocked to gold Wednesday against the backdrop of rising tensions between the US and North Korea, offsetting some of the broad-based declines on the commodity-heavy Toronto stock index.

The Dow Jones Industrial Average.DJI fell 204.69 points, or 0.93 percent, to close at 21,844.01, the S&P 500.SPX lost 35.81 points, or 1.45 percent, to 2,438.21 and the Nasdaq Composite.IXIC dropped 135.46 points, or 2.13 percent, to 6,216.87.

Crude oil was 0.5 percent higher with prices at $49 per barrel.

North Korea said it was considering plans to fire missiles at Guam, a US -held Pacific island, after President Trump's warning on Tuesday. Japan was closed on a public holiday.

Meanwhile, the dollar index, which tracks the dollar against a basket of six major currencies, slipped on the back of weaker-than-expected USA producer prices.

But U.S. stocks regained some lost ground, despite Trump's comments Friday that U.S. weapons are "locked and loaded", ready to respond if North Korea acts "unwisely".

The dollar hit an eight-week low against the Japanese yen on Thursday, as the escalating tensions between the United States and North Korea drove investors to seek safety in assets viewed as less risky.

Heightened geopolitical tensions between the US and North Korea also meant that the dollar/yen pair would have a hard time responding to positive data, Lien added. Spot gold reached a two-month high. Hong Kong's Hang Seng Index dropped 1.69%, while mainland markets saw the Shanghai Composite dip 1.04%.

CURRENCIES: The dollar rose to 109.24 yen from 109.20 while the euro weakened to $1.1756 from $1.1773.

In Europe, Britain's FTSE100 was down over one percent, Germany's DAX traded 0.5 percent lower, while the French CAC40 index was 0.62 percent in the red, as of 9:00am GMT.

Seoul shares hit 11-week low amid selling by foreign investors following Trump's fresh warning to North Korea.

The pan-European STOXX 600 was down 0.7% at closing, France's CAC 40 fell 1.4% after a auto 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%.

About 7.5 billion shares changed hands on U.S. exchanges, well above the 6.25 billion average for the last 20 days.

In economic news, German consumer inflation grew an annual 1.7% in July, slightly faster than the 1.6% increase registered in June, final data from Destatis showed.

Gold rose to its highest level in nearly two months, while the Swiss franc increased by more than 1% against the USA dollar and saw its biggest one-day gain against the euro in more than two and a half years.

Oil also regained momentum as data pointed to declining USA inventories.

Macy's dropped 4.2 percent as it reported second-quarter revenues fell 5.4 percent to $5.6 billion, another sign of the travails facing department stores.

Shares of Snap were off about 13 percent premarket following the social media company's earnings that came below estimates and a slew of price target cuts.

The FTSE 100 firm announced in March previous year that it would run its US-based asset management operation, its UK-based wealth unit, an emerging markets division and Nedbank in South Africa as separate businesses.

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