Economia

Global shares mostly lower on rising unease over North Korea

Global shares mostly lower on rising unease over North Korea

But the market quickly bounced back, led by numerous tech stocks that were sinking on Thursday. The September copper contract was down two cents to $2.91 a pound.

The yen is often sought in times of geopolitical tension, partly because Japan has a big current account surplus, and it being the world's biggest creditor nation, there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty. India's Sensex shed 0.2 percent to 31,951.28 and benchmarks in Taiwan, New Zealand and Thailand also declined.

Gold prices rose while the yen hit an eight-week high against the dollar and made broad gains against other peers, reacting to the political tensions stemming from the Korean Peninsula. Palladium added 0.4% to $899.80 per ounce and was on track to end the week about 2% higher.

Missile makers Raytheon and Lockheed Martin have outperformed Wall Street by nearly four per cent in recent days and the Dow Jones US defence index is at a record high and on a seven-day unbroken run of gains.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States. The Korean won is also suffering - the USA dollar is up 0.58% against the currency at the time of writing (7.30 a.m. GMT/1.30 a.m. ET), while the pound is up 0.77% against the won, and the euro is up 0.53% against it. The dollar is down 0.21% against sterling at the time of writing and down 0.27% against the Japanese yen. It would be ideal for the precious metals if the dollar were to weaken again now, and that could happen courtesy if U.S. economic data is weaker.

Markets are now awaiting U.S. consumer price data for July, due later today.

In Asia, the Shanghai Composite Index slid 1.63 percent, in Hong Kong the Hang Seng fell over two percent, and Japan's Nikkei finished the trading day 0.05 percent down.

The euro held steady at $1.1776.

Weakness in U.S. Treasury yields may also be supporting the yen, Sweeting said. USA gold futures for December delivery rose 0.2 per cent to $1,281.90 per ounce on Thursday. "There are four more (inflation) prints between now and the December FOMC meeting and we expect the Fed to remain data-dependent, if a touch more cautious", TD Securities said in a note. It was on course for a weekly rise of about 5%, the biggest such gain since July 2016. Brent crude, used to price global oils, added 26 cents to $52.96. The Dow is up 48.61 points or 0.2% at 21,892.62, the Nasdaq is up 35.83 points or 0.6% at 6,252.71 and the S&P 500 is up 7.77 points or 0.3% at 2,445.98.