North Korea tensions send dollar to eight-week low vs. yen

North Korea tensions send dollar to eight-week low vs. yen

Escalating tensions around Pyongyang's nuclear ambitions sent a shiver through markets worldwide and pushed the dollar to below 109.7 yen in afternoon forex trade to an eight-week low against the safe haven currency, piling more pressure on Japanese stocks.

The Standard & Poor's 500 index fell 5.99 points, or 0.2 percent, to 2,474.92.

"If earnings can stay strong and interest rates remain low investors can look beyond North Korea and continue to rally equities", said Phipps.

The dollar index.DXY, which tracks the greenback against six rival currencies, was down 0.17 percent to 93.391.

The Nasdaq Composite was down 16.88 points, or 0.26 percent, at 6,353.58.

Consumer-focused stocks, media companies and banks accounted for much of the market decline.

Disappointing quarterly results from big department store chains also weighed down the market.

Fossil tumbled 25.1 percent after the watch maker said sales continued to weaken, falling short of analysts' estimates. Energy stocks fell along with crude prices as investors kept an eye on the latest company earnings and geopolitical news.

Shares of U.S. department stores Kohl's and Macy's were weak after their results. The VIX closed 1.4 percent higher but at the lowest level of the day at 11.11, after rising as high as 12.63.

The dollar index, which measures the USA currency against a basket of other major currencies, fell 0.14 percent.

The dollar index fell 0.14 percent, with the euro unchanged at $1.1757. The market slide accelerated slightly in the last half-hour of trading as Trump denounced North Korea's nuclear program.

Valeant Pharmaceuticals International, Inc. lost 1.58 Canadian dollars (1.24 USA dollars), or 9.4 percent, to 17.89 Canadian dollars (14.09 dollars), after the company said its subsidiaries in Australia were the subject of a tax audit.

In Europe, the Stoxx 600 Index ended the session with a drop of 0.7 percent from the previous close.

"Although we certainly can get a 5 to 7 percent correction, we don't think it's the start of a significant bear market", Peterson noted. Investors reacted by driving up the price of gold and bonds, traditional safe-haven plays.

Data storage company Seagate Technology (STX) is posting a standout gain within the hardware sector, climbing by 2.1 percent.

United States gold futures for December delivery was mostly unchanged at $1,290.50 per ounce. Britain's FTSE 100 was down 1.1 percent. Hong Kong's Hang Seng was off 0.3 percent.

The U.S. dollar fell to 110.48 yen from 110.72 yen late Monday. On the Nasdaq, 1,846 issues fell and 953 advanced favoring decliners. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2 basis points at 2.192 percent.

The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday. Brent crude, the global standard, lost 23 cents to $52.14 a barrel in London.

The euro was 0.14 percent higher against the dollar.