TSX falls as North Korea tensions spur flight to safety

TSX falls as North Korea tensions spur flight to safety

USA equities steepened their losses late in the session after President Donald Trump said his earlier warnings to North Korea may not have been tough enough.

Global sentiment has been subdued today after US President Donald Trump warned North Korea that threats will be met with "fire and fury".

Disney shares fell sharply on Wednesday -3.88% weighing on the big board after the company reported a mixed third quarter financial performance and news about going head to head with other streaming services such as Netflix, Amazon and Hulu.

Park Chun-young, an analyst at Daishin Securities, also said North Korea's latest threat against the United States weighed on the main index.

In the United Kingdom, the FTSE 100 closed down 0.59%, or 44.67 points, at 7498, broadly in line with negative trends in European markets.

"We are encouraged by our first-quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan", he said.

Many world stock markets have hit record or multi-year highs in recent weeks, leaving them vulnerable to a sell-off, and the tensions over North Korea have proved the trigger.

"But looking ahead unless we start to see a conflict break out or a major stock market correction, (gold) is capped at 1,295 (although) the upside at moment is the favoured direction".

Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.

Shares in London-listed precious metals miners Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) meanwhile have been in demand, with investors flocking to safe haven assets such as gold.

On Tuesday, stronger-than-expected U.S.jobs data from the Labor Department weighed on gold, dragging prices to the lowest since July 26 at $1,251.01 an ounce.

US Treasury yields fell to as low as 2.197 percent, their lowest level since June 28 overnight.

Priceline Group dropped 8 percent after issuing a profit forecast that was weaker than analysts were expecting.

Avis Budget Group (CAR.O) fell 5.84 percent as the auto rental company's second-quarter profit missed expectations and the company cut its full-year profit view.

"A consistent drawdown in inventories is the best indicator of the tightness coming in the oil markets which can feed prices higher in time", McKenna noted. Barratt Developments fell 2.88 percent, Taylor Wimpey lost 2.98 percent and Persimmon shed 2.92 percent. The S&P fell as much as 0.52 percent at its session low. U.S. Defense Secretary Jim Mattis told Pyongyang it should stop any actions that would lead to the "end of its regime and the destruction of its people".

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce.

The MSCI Asia Pacific Index slid 0.5 per cent to 160.41 as of 11:07 am in Hong Kong as more three stocks declined for each one that advanced.