Economia

Asia Pacific Market: Korean tensions likely continue selloff

Asia Pacific Market: Korean tensions likely continue selloff

Stock markets were lower and the price of gold moved up amid political tensions between the United States and North Korea.

The Dow industrials and S&P 500 rose 0.2% in recent trading, though the S&P 500 is set to end the week down 1.4%, its biggest loss since March.

Chinese stocks seemed little affected though, and Australian stocks rose Wednesday after a weaker Tuesday amid strong earnings reports from big banks.

In Asia, markets were mostly lower after disappointing Chinese trade data. The UK's FTSE 100 Index slid 0.6 percent, while Germany's DAX Index retreated 1.1 percent and France's CAC 40 Index gave up 1.4 percent.

The dollar index .DXY rose 0.23 percent, with the euro EUR= down 0.39 percent to $1.1747.

Stocks tumbled today after President Donald J. Trump said his "fire and fury" comment to North Korea "maybe wasn't tough enough". European stocks were facing the worst week in nine months (http://www.marketwatch.com/story/european-stocks-face-worst-week-in-9-months-on-us-north-korea-tensions-2017-08-11) on U.S. "This is not the first time the markets are playing the off-again, on-again scenario", said analyst Naeem Aslam at Think Markets, that's why the uncertainty in equities has eased down faster, especially if compared to yesterday's sell off. It's also called the "fear index".

The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment.

Gold prices turned higher after unease over North Korea, reversing the downward move after the jobs data lifted the dollar.

Only utilities sector stocks eked out a gain on a day of mostly listless trading as investors kept an eye on the latest company earnings and geopolitical news.

LOOKING GOOD: Michael Kors climbed 21.9% to $45.40 after the luxury handbag and apparel designer and retailer posted quarterly results that beat analysts' forecasts as sales improved.

In oil, the price of Brent crude sunk by 0.5% to 51.65 U.S. dollars a barrel amid concerns about over supply in the market.

Avis Budget Group slumped 9.9 percent after the vehicle rental company cut its guidance following a weak second quarter.

The pound was up 0.3% against the euro at 1.1091 and down nearly 0.1% on the dollar at 1.2994.

The September crude contract was up 20 cents to US$49.76 per barrel and the September natural gas contract was up seven cents to US$2.95 per mmBTU. Simon Property Group fell 2.1% to $162.86.

USA crude oil tumbled 2% to $48.59/bbl, failing to hold above $50 as a report from OPEC showed crude production among the group's members rose in July.

Investors are losing enthusiasm for Canada's banking stocks as a slowdown in the country's housing market dents banks' growth prospects, with insurance companies seen as a better bet to benefit from higher interest rates. Crude briefly pared losses in late trading after USA inventories fell more than expected last week.