Economia

Dow streak of records ends amid US-North Korea tensions

Dow streak of records ends amid US-North Korea tensions

The Swiss franc gave up some gains (http://www.marketwatch.com/story/swiss-franc-gives-up-some-gains-as-investors-monitor-us-north-korea-standoff-2017-08-10), as the USA dollar was flat across the board.

U.S. President Donald Trump ratcheted up his rhetoric toward North Korea on Thursday, saying the reclusive communist country should be "very, very nervous" if it even thinks about attacking the United States or its allies.

Markets saw a tentative recovery in risk appetite in overnight USA and early Asian trading, but anxiety mounted again as Asian stocks fell back and London, Frankfurt and Paris dropped 0.5-1.2 percent in Europe.

On Thursday, New York Fed President William Dudley said he expects sluggish US inflation to rise over the next several months while the hot labor market gets even hotter.

Media giant CBS rose 1.8 percent after reporting better-than-expected second-quarter earnings as it boosted subscriptions to the network's streaming services.

US crude oil futures settled almost 2 percent lower at $48.59 a barrel, as Russian Federation considered a future output resumption and the Organization of the Petroleum Exporting Countries boosted its July production numbers.

Biotechnology stocks are turning in some of the market's worst performances on the day, resulting in a 2.4 percent drop by the NYSE Arca Biotechnology Index. The EUR/JPY was down 0.54% to trade at 128.924 Yen while the GBP/JPY was down 0.58% to trade at 142.489 Yen. Chinese blue chips are about flat but Hong Kong's Hang Seng index is down 0.3 percent.

Although Japan could be in the front line of any clash with North Korea, the yen is benefitting because Japan is the world's biggest creditor nation and Japanese investors tend to repatriate funds in times of stress, attracting other flows. It was last up 1 percent at 1.133 per euro.

Sterling was last trading at $1.2998, up 0.07 percent on the day. The yield on three-year Treasurys rose 2.8 basis points to 1.833 percent and the return on benchmark five-year government bonds gained 3.2 basis points to 2.038 percent. It has weakened 1.5 percent since hitting a 2-1/2 year high of 1.1910 on August 2. 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.

The remarks, following North Korea's earlier revelation of a plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, gave investors a reason to pocket profit in the sectors, such as technology, that have been the biggest gainers in recent months, analysts said. TMX Group Ltd was up 3.2 percent to C$68.02, while Quebecor Inc added 4.3 percent to C$45.20 and Canadian Tire Corp Ltd climbed 5.7 percent to C$149.89. Brent, the worldwide benchmark, was last down 25 cents a barrel at $51.89.

The tech-laden Nasdaq Composite Index plummeted 135.46 points, or 2.1%, to close at 6,216.87.