The Australian dollar, which rose to a 19-month high near 90.00 yen late in July, was down 0.7 percent at 86.67 yen after slipping to a one-month low of 86.23 yen. The stock was the biggest decliner in the S&P 500, losing $155 to $1,893.99. The UK trading session took USD/CHF lower to hit a day low of 0.9630 towards the closing bell, but closed up slightly on the day by 0.03%. Gold and bond prices were headed higher. A U.S. Navy destroyer sailed within 12 nautical miles of an artificial island built up by China in a challenge to Beijing's territorial claims, officials told Reuters. The Korean won also continued to skid, down 0.45% to 1,147.2, falling below its 200-day moving average for the first time in a month.
Guam which is more than 3,000 km (2,000 miles) to the southeast of North Korea, is home to about 163,000 people and a U.S. Navy base that includes a submarine squadron and a Coast Guard group, and an air base.
President Donald Trump says that perhaps his "fire and fury" warning to North Korea "wasn't tough enough".
Earlier, Trump warned North Korea on Tuesday it would face "fire and fury" if it threatens the United States, prompting the nuclear-armed nation to say it was considering firing missiles at Guam, a US -held Pacific island. Netflix was down 3.22 per cent. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent.
Shares in HubSpot, Inc. (NYSE:HUBS) Acquired by Amalgamated Bank
The software maker reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of ($0.01) by $0.08. CIBC reaffirmed a buy rating and issued a $78.00 price objective on shares of HubSpot in a research note on Thursday, May 4th.
United States stocks also fell, lingering in negative territory the entire session, but notching smaller declines than in overseas markets.
At the very least I think the last three days show that the market's character has changed from indifference to something more emotional.
On Thursday the greenback had shed 0.8 per cent versus the yen, with the Japanese currency rallying broadly against most major currencies. Britain's FTSE 100 added 0.1 percent.
The 30-year bond was last up 4/32 in price to yield 2.7871 per cent, from 2.794 per cent late on Thursday. Panasonic was off 0.74 percent to sit at 1,475.5 yen. The 10-year German bund yield traded at 0.43 percent while the 10-year USA yield declined to 2.243 percent. Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan .miapj0000pus had skidded 1.55 percent, its biggest one-day loss since mid-December, to leave it down 2.5 percent for the week."What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney.
"Whether it is a credit crunch in China, policy error from the Fed, or fear of an over-valued USA stock market, there are many reasons to maintain a balanced multi-asset portfolio that has exposure to defensive asset classes and currencies". September-dated crude futures settled up 0.8%, or 39 cents, at $49.56 per barrel.