Global stocks shudder on Trump warnings to North Korea

Trump pounds North Korea

The dollar was further weighed down on Friday by the soft USA inflation data. EIA reported that USA crude inventories fell last week as refineries boosted output to the highest percentage of capacity in 12 years.

"I think the market was looking for a reason to come off here", said Irwin Michael, portfolio manager at ABC Funds.

"In all likelihood the North Korea problem will persist for years to come, with the U.S, and increasingly China, attempting to contain and restrain Kim Jong-un", said Tom Elliott, worldwide investment strategist at deVere Group.

Buying interest may be somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continues to raise geopolitical concerns.

Against the pound, the euro managed to gain margially, rising 0.06% to 0.9047.

Barrick Gold Corp rose 2.3 per cent to C$21.74 as the price of gold, a safe-haven asset, reached its highest levels in two months.

On Thursday the greenback had shed 0.8 per cent versus the yen, with the Japanese currency rallying broadly against most major currencies.

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce. The stock lost $4.15 to $102.83.

This gave investors some hope at the end of a jittery week, which could show the S&P's biggest weekly loss in more than four months, primarily due to a continuous exchange of threats between the United States and North Korea.

The Korean People's Army said yesterday it was carefully examining plans for a missile attack on the US Pacific territory of Guam.

His comments came in response to North Korea's threat to fire ballistic missiles toward the USA territory of Guam, which is home to US bombers and other strategic assets.

McCain said in the radio interview that the Trump administration should immediately engage with China following the reports that the North Korean military now has a miniaturized nuclear device that can fit atop an intercontinental ballistic missile.

However, the S&P was still not far off record levels.

'Stock markets in Europe are still under pressure because of the heightened tensions surrounding North Korea, ' said David Madden, market analyst at CMC Markets UK.

Global stock markets ended their worst week in months amid rising tensions between the US and North Korea, though USA stock indexes steadied on Friday to close up slightly.

The technology sector .SPLRCT was the S&P's biggest drag with a 2.2 per cent drop.

Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea. Utilities companies were down the most.

About 6.48 billion shares changed hands on USA exchanges on Wednesday compared with the 6.16 billion average for the last 20 sessions.

Selling was broad. Declining issues outnumbered advancing ones on the NYSE 6-to-1; on Nasdaq, a 3.60-to-1 ratio favoured decliners.

"Given the great run we've had, seems like some sort of pullback wouldn't be surprising", Michael Baele, managing director of investments at U.S. Bank Private Wealth Management, said.

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