FTSE Slips on North Korea Fears

After seeing some early volatility, treasuries moved moderately higher over the course of the trading session on Friday. Selling pressure was observed in all of the S&P 500’s major sectors on Tuesday.

21st Century Fox will report earnings after the market close in the U.S.

The growing tensions between North Korea and the United States are continuing to weigh on the financial markets today.

Overnight, North Korea raised the stakes further by outlining a plan to fire a missile into the water near Guam, the USA territory in the Pacific.

North Korea claimed “only absolute force” can work on someone as “bereft of reason” as Trump and detailed plans to fire a salvo of missiles into waters around the US Pacific territory of Guam.

The U.S. equity market is hovering near record levels and volume has been tepid following the onset of summer.

Shares of Snap were off 12.48% following a miss on revenue and daily active users, leading to a slew of price target cuts.

On the USA economic front, the Labor Department released a report showing labor productivity increased by slightly more than expected in the second quarter. On the New York Mercantile Exchange light, sweet crude futures for delivery in September rose $0.39, or 0.8%, to $49.56 a barrel. The euro slid to $1.1752 from $1.1793.

This week, the S&P 500 started on a stronger note by rising to fresh record high price levels.

Korea’s Samsung Electronics fell 2.8% Friday and was down 6.1% on the week.

Netherlands-based telecom conglomerate Altice NV and its USA cable unit are in the early stages of working on an offer to buy Charter Communications, sources told Reuters on Wednesday, in a move that would build more scale in the United States.

The rally by gold stocks came as the price of gold for December delivery jumped $16.70 to $1,279.30 an ounce due to its appeal as a safe haven.

While some traders and investors may view this as an opportunity to get into the markets which had been continuing to trade near the highs of its range for so many weeks, others may be way of the market continuing to drop further in the coming days.

The dollar was up 0.05 percent to 109.25 yen JPY=, after earlier falling to a sixteen-week low following data showing USA consumer prices rose less than expected in July.

The major European markets also showed notable moves to the downside on the day. Hong Kong’s Hang Seng Index plummeted 560.49 points or 2% to 26,883.51. South Korea, a tech-focused modern economy which accounts for roughly 2% of global GDP in its own right, would also be devastated-and would undoubtedly bear the brunt of the human toll, as well.

Trading on Thursday may be impacted by reaction to reports on producer price inflation and weekly jobless claims.

“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.