USA stocks tumble on North Korea worries

USA stocks tumble on North Korea worries

After touching a more than two-month high, spot gold last added 0.3 percent to $1,290.00 an ounce. The stock was the biggest decliner in the S&P 500, losing $155 to $1,893.99. USA and British equivalents were also trading a touch above Wednesday's six-week lows.

The Nasdaq Composite was up 38.25 points, or 0.62 percent, at 6,255.12.

Among other markets, oil prices advanced after a US Department of Energy report showed lower oil inventories.

The pan-European FTSEurofirst 300 index .FTEU3 lost 1.01 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.26 percent for a weekly loss of 1.6 percent, the largest since the week to November 4.

The North Korea situation isn't the only thing weighing on stocks.

US stocks clawed back losses late on Wednesday as investors appeared to brush off geopolitical concerns after falling in the wake of President Donald Trump's "fire and fury" warning to North Korea.

The rise in geopolitical tensions this week, which heightened after U.S. President Donald Trump on Tuesday warned North Korea that it would face "fire and fury" if it threatened the United States, has drawn investor attention away from second-quarter corporate earnings season, which is winding down. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.37 percent lower. Alliance Data Systems fell $6.28, or 2.7 percent, to $225.64.

TECH SLIDE: Losses among technology stocks led the market slide.

However, bank stocks, including Goldman Sachs, Bank of America and Morgan Stanley, were down about 1 percent on the dimming prospects of another rate hike this year.

"I will tell you this, North Korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world", Trump said.

The dollar was up 0.05 percent to 109.25 yen, after earlier falling to a sixteen-week low following data showing US consumer prices rose less than expected in July.

The yen was up 0.7% vs the dollar at Y110.20 and was 0.7% higher against the euro at Y128.74.

Tensions spiked yet further when North Korean state media later said Pyongyang was considering strikes near USA military installations in Guam.

The 30-year bond last rose 6/32 in price to yield 2.7847 percent, from 2.794 percent late on Thursday.

Shiseido shares soared 13.77 percent to 4,420 yen after the makeup company upgraded its annual sales and profit forecasts, and announced robust earnings for the January-June period.

The Korean won continued to fall versus the dollar, down 0.13 per cent to 1,143.5 yesterday for a 1.6 per cent decline on the week.

OIL: Benchmark U.S. crude rose 23 cents to settle at $48.82 a barrel on the on the New York Mercantile Exchange.

"Whether it is a credit crunch in China, policy error from the Fed, or fear of an over-valued USA stock market, there are many reasons to maintain a balanced multi-asset portfolio that has exposure to defensive asset classes and currencies". Brent crude, used to price global oils, added 21 cents to $52.91.