FTSE sell-off gathers strength on North Korea fears

14 August, 2017, 02:30 | Author: Leticia Walters
  • Traders work on the floor of the New York Stock Exchange

The S&P has lost more than 1 percent on only three days this year. USA gold futures for December delivery was mostly unchanged at $1,290.50 per ounce.

The U.S. blue chip index is down 1.1% this week and the S&P 500 is 1.6% lower. Broadcom gave up $5.72, or 2.3 percent, to $243.45.

"I think the market was looking for a reason to come off here", said Irwin Michael, portfolio manager at ABC Funds.

US stock futures pointed south on Friday as geopolitical tensions continued to ramp up between North Korea and the United States, sending investors into less risky assets.

Against the pound, the euro managed to gain margially, rising 0.06% to 0.9047.

Spot gold prices were little changed at $1,286.05/oz, after touching a two-month high earlier. AES Corp. shed 26 cents, or 2.3%, to $11.12.

"The slight bias to the upside (in stocks) is a result of the CPI number". The stock lost $4.15 to $102.83.

"Add it all up and stocks are vulnerable to a pullback or correction", Bittles said.

Speaking live on state television at a forum for Russian students, Lavrov encouraged Pyongyang and Washington to sign up to a joint Russian-Chinese plan, under which North Korea would freeze its missile tests and the United States and South Korea would impose a moratorium on large-scale military exercises.

"Of course, it's all come at a time when share markets are due for a correction so North Korea has provided a flawless trigger".

Instead, he said his statement "maybe wasn't tough enough".

However, the S&P was still not far off record levels.

The CBOE Volatility index, the most widely followed barometer of expected near-term USA stock market volatility, rose the most in about 12 weeks. The index - which last week hit 22,000 for the first time - closed at 21,844.

Elliott made his comments as a series of threatening remarks between US President Donald Trump and North Korean leader Kim Jong-un sent the price of gold soaring to its highest weekly closing price last Friday, of US$1284.40 an ounce, since last November, before Donald Trump was elected. Only 3 of the 30 stocks in the Dow finished the day with a gain: IBM, Coca-Cola and McDonald's.

"Since these are the stocks that have been in the spotlight the most, they tend to have the most volatility upwards and downwards", said Chris Bertelsen, chief investment officer of Aviance Capital Management in Sarasota, Florida.

The sabre rattling sent tremors throughout stock markets globally as investors responded to rising geopolitical tensions by selling off stocks and moving to traditional safe havens such as gold and U.S. government bonds.

MARKETS OVERSEAS: Major indexes in Europe were headed lower.

Macy's M.N shares closed down 10.2 per cent and Kohl's KSS.N fell nearly 6 per cent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

Advancing issues outnumbered decliners on the NYSE by 1,432 to 1,310. Oil also regained momentum as data pointed to declining US inventories.

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