Economia

Gold, silver futures settle higher

Gold, silver futures settle higher

"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY.

But U.S. stocks regained some lost ground, despite Trump's comments Friday that U.S. weapons are "locked and loaded", ready to respond if North Korea acts "unwisely". MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.48 percent lower. The Japanese market was closed in observance of the Mountain Day holiday.

With the backdrop of rising tensions between North Korea and the U.S., Strategas Research studied the immediate and longer-term impact on the S&P 500 from a series of key events going back to World War II.

Traders across the globe reacted with dismay to Trump's warning Thursday that his earlier threat to unleash "fire and fury" on the reclusive nuclear-armed state may not have been "tough enough".

The precious metal miners benefited from the flight to safety, with bullion prices hitting near two-month highs on North Korean worries.

Japan is the world's biggest creditor country and there is an assumption that investors there will repatriate funds in a crisis.

"The latest threats over North Korea have finally escalated to the point where market has been obliged to react", Ric Spooner, chief market analyst at CMC Markets, wrote in a note.

Valeant's stock, which rallied a day before following quarterly results, sank 9.6 percent to C$17.85 after it said its subsidiaries in Australia were the subject of a tax audit.

Geopolitical concerns continued to weigh on Wall Street amid an ongoing escalation in tensions between the U.S. and North Korea. A gauge of volatility on the S&P 500, the VIX hit its highest reading for over a month. It soared over 2 percent in the previous two sessions, and is set for a weekly gain of 2.25 percent. "But looking ahead, unless we start to see a conflict breakout or a major stock market correction, (gold) is capped at $1,295, (although) the upside at the moment is the favoured direction".

But Michael said the overall market was still expected to saw-tooth its way higher due in part to a batch of better-than-expected earnings and low interest rates, despite the shift toward raising rates.

The strength in the sector came amid a jump in the price of gold.

Global benchmark Brent also fell 0.9 percent to $51.44, after Thursday's 1.5 percent drop.

Markets are now awaiting USA consumer price data for July, due later in the session.

European stocks have fallen for a third day on Friday and look headed for their worst week since early November a year ago, as US President Donald Trump's rhetoric on North Korea over the past few days made investors risk averse.

Crude futures extended losses on fears of slowing demand and lingering concerns over a global oversupply meanwhile.

Markets saw a tentative recovery in risk appetite in overnight US 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.