Markets slide for third day on political tension

President Donald Trump speaks in the Roosevelt Room of the White House in Washington Wednesday Aug. 2 2017
President Donald Trump speaks in the Roosevelt Room of the White House in Washington Wednesday Aug. 2 2017
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13 August, 2017

Brent crude, used to price global oils, added 26 cents to $52.96. "Whether it is a credit crunch in China, policy error from the Fed, or fear of an over-valued US stock market, there are many reasons to maintain a balanced multi-asset portfolio that has exposure to defensive asset classes and currencies".

Some investors are on edge after U.S. President Donald Trump warned North Korea of "fire and fury". Trump's comments followed reports the North has mastered a technology needed to strike the United States with a nuclear missile.

"Dollar/yen has already gone below 110.00 yen, and at this stage we are likely to see the pair begin to bottom out as the market finds time to assess the situation", said Kyosuke Suzuki, director of forex at Societe Generale in Tokyo.

S&P 500 e-minis were down 10.25 points, or 0.41 percent, with 180,193 contracts traded.

This week, the S&P 500 started on a stronger note by rising to a new record high. The Dow also fell 0.5% to dip briefly back below the 22,000 mark, and the Nasdaq tumbled almost 1%.

Gold enjoyed another strong session as traders sought out safe havens, with the price lifting 0.1% to 1,287.8 USA dollars an ounce.

Energy stocks retreated 0.5 percent, despite higher oil prices.

The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the election.

Focusing on United Kingdom stocks, Old Mutual was among the biggest fallers after saying it was taking a "cautious" approach to the dividend despite hiking half-year profits.

Retailers Wal-Mart (WMT), Home Depot (HD), Target (TGT), Staples (SPLS), and Gap (GPS) are also among the companies due to report their quarterly results next week. The stock fell 85 cents to $12.76.

Shares of Snap (SNAP) are also seeing pre-market weakness after the parent of Snapchat reported a wider than expected second quarter loss on revenues that came in below expectations.

USA stocks felt significant early drag, with the S&P 500 down 0.5% at the open. It is heading for a 2.5 percent drop for the week. Defense and home improvement stocks were among the day's risers while travel & tourism and consumer electronics lagged.

"We have not had a 5 percent correction since June 2016".

USA crude CLcv1 fell 0.55 percent to $49.12 per barrel and Brent LCOcv1 was last at $52.03, down 0.65 percent on the day. Altice USA, the subsidiary of the French company, added 0.1 per cent. It is poised to end the week down 1.9 per cent. It was last up 1.2 percent at 1.1305 per euro. Natural gas gained 2 cents to $2.82 per 1,000 cubic feet.

USA gold futures for December delivery was mostly unchanged at $1,290.50 per ounce.

Revenue rose 13% in the period, or 6.2% higher at constant currency to GBP3.97 billion from GBP3.53 billion, but G4S said it is still expecting annual revenue in 2017 to grow only by 4.0% to 6.0%.

The U.S. dollar fell to 110.48 yen from 110.72 yen late Monday.

Markets overseas were mixed Tuesday.

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%.


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