Markets extend losses as Korea tensions escalate

Markets extend losses as Korea tensions escalate

Markets extend losses as Korea tensions escalate

European markets registered their worst weekly loss this year on Friday amid rising tensions between USA and North Korea.

"It looks like a technical correction, but if there's more bad news in the days to come, or if geopolitical tensions escalate, this short-term correction could become a major correction for stock markets here and globally", CMC Markets analyst Margaret Yang said.

President Trump took aim at North Korea again on Thursday, saying that his earlier threat to unleash "fire and fury" may not have gone far enough.

The Russian dollar-traded index RTS was down 1.49 percent, and ruble-traded MICEX fell 1.29 percent by midday.

SIMMERING TENSIONS: North Korea revealed on Thursday a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.

Macy's was down 8.9 per cent after the company said its sales continued to decline in the second quarter. -North Korea tensions. The VIX, a measure of how much volatility investors expect in stocks, jumped 25.2 per cent, the biggest increase since May. The Dow is up 34.62 points or 0.2 percent at 21,878.63, the Nasdaq is up 25.62 points or 0.4 percent at 6,242.49 and the S&P 500 is up 4.36 points or 0.2 percent at 2,442.57. Rival Advanced Micro Devices was also down 2.6 percent.

Oil prices rose before a report expected to show USA crude stocks fell for a sixth week. MetLife fell $1.38, or 2.9 per cent, to $46.93, while Synchrony Financial slid $1.01, or 3.3 per cent, to $29.24.

Losses at the Snapchat parent ballooned to $443 million in the second quarter, a almost fourfold increase from the same period a year ago. Top automaker Hyundai Motor fell 2.07 percent to 142,000 won.

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Heading into Thursday, some 89 percent of the companies in the S&P 500 had reported quarterly results. The stock fell 76 cents to $5.48.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.20 percent from 2.25 percent late Wednesday.

The U.S. equity market is hovering near record levels and volume has been tepid following the onset of summer. While the German DAX Index has edged down by 0.1%, the French CAC 40 Index and the UK's FTSE 100 Index are both down by 1%.

On the currency front, the United States dollar is trading at 108.82 yen compared to the 109.20 yen it fetched at the close of NY trading on Thursday.

The euro dipped 0.1 per cent to $1.1733 but the single European currency has been slipping this week against the dollar, having hit a more than 2 1/2-year high of $1.1892 on August 2.

In Asia, benchmarks in Hong Kong and South Korea - which had been one of the best performers of 2017 - closed down 2% and 1.7% respectively, Friday, putting the week's drop at 2.5% and 3.2%.

In Europe, the Stoxx 600 Index fell 1%.

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