13 August, 2017
American and South Korean officials said they would move forward with large-scale military exercises later this month, which North Korea claims are a rehearsal for war.
Helping offset the geopolitical tensions was weaker-than-expected consumer price data for July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year. The Standard & Poor's 500 index dropped 1.4 per cent to 2,438.21. Eastern time. The Dow Jones industrial average slid 84 points, or 0.4 percent, to 22,000. Brent crude, used to price global oils, declined 29 cents to $51.61 per barrel in London.
United States stocks saw their largest losses since May on Thursday, as tensions mounted between North Korea and the US.
Brewing tensions between the US and North Korea put investors in a selling mood again Thursday, dragging USA stocks lower for the third day in a row. The FTSE 100 index of leading British shares was 0.6 percent lower. The Nasdaq Composite took an even bigger hit, closing down 2.1% at 6,216.87.
The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the election. But Mellor notes the rhetoric has reached a "different level". "So why buy risk assets (such as equities or credit) when the thematic at hand isn't going to resolve itself in the immediate short-term?"
"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.
The market indexes wavered between small gains and losses for much of the morning, then veered lower by afternoon. Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78.
Selling was broad. Declining issues outnumbered advancing ones on the NYSE 6-to-1; on Nasdaq, a 3.60-to-1 ratio favoured decliners.
It said job cuts are likely as it looks to save £145 million a year by 2022, but it said it was too early to say how this will affect the combined workforce of almost 7,300 in the UK.
The remarks followed a new report asserting that USA intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles. Economists had expected prices to rise by 0.2%.
Neil Mellor, a currency strategist with Bank of New York Mellon in London, said: "The pound is on the way down".
On the Fed speaker list, Dallas Fed President Rob Kaplan is scheduled to appear in a question-and-answer session at the University of Texas Arlington, in Arlington, Virginia, at 9:40 a.m. Its shares slid $11.64 to $61.70.
USA stock indexes were set to open little changed on Friday, with the S&P 500 on track to post its biggest weekly loss in nine months, as investors remained cautious on heightened tensions between the United States and North Korea. Kinaxis shares fell after the supply chain management software maker cut its forecast. Some say expectations for its server-chip business were just too high (http://www.marketwatch.com/story/nvidia-stock-could-pause-as-server-growth-slows-down-2017-08-10).
Analysts said media and entertainment stocks also seemed to get caught up in the broader market drop, but emphasized it was often hard to isolate reasons behind specific stocks' movements.
J.C. Penney Co.(JCP) is on tap to report quarterly earnings ahead of the market open. The stock lost $2.97 to $8.87.