Economia

USA stocks end three-day losing streak after rollercoaster week

USA stocks end three-day losing streak after rollercoaster week

"For quite some time the market hasn't really reacted to things on the Korean peninsula because we know from the past it is largely North Korean sabre-rattling, and it may yet be".

Housebuilders Persimmon and Barratt Developments were among the biggest gainers of the day, up 1.58% and 1.02% respectively.

The dollar weakened after news that U.S. producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. Pyongyang said it was examining plans for attacking Guam, a US territory in the Pacific with a military base.

The Swiss franc, meanwhile, looked set for its biggest one-day rise in more than two years.

Germany's DAX dropped 0.3 percent to 12,117.07 and the CAC 40 of France lost 0.3 percent to 5,132.22.

USA stock index futures fell, with the S&P 500 indicated to open down 0.4 percent after share prices fell in Europe and Asia.

The baht, regarded as safe haven, rose a bit to 33.22 against the United States dollar from 33.24 on Thursday.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.6 percent in its third session of declines, heading for a 1.5 percent drop for the week.

The Japanese yen strengthened by 0.5 percent to around 109.70 per dollar.

The data maintained concerns surrounding lower than expected USA inflation which could deter the Federal Reserve from raising interest rates again this year.

The Swiss franc reversed a two-week losing streak and gained 1.1 percent to as firm as 0.9611 per dollar.

The Korean won KRW=KFTC also continued to skid, sliding 0.3 percent to 1,145 won to the dollar, after earlier sinking to its lowest level in a month. The Swiss currency was also on track for its biggest daily gain against the euro since the Swiss National Bank removed its cap on the currency in January 2015. These mark a bucking against the 1.3% fall in Australia's benchmark index.

Analysts said yields, which move inversely to prices, could fall further if the geopolitical tensions continue to rise - even if central bankers in the U.S. continue to talk of raising interest rates or scaling back stimulus programmes.

Investors opted for the perceived safety of US Treasuries, which pushed the yield on the 10-year note three basis points lower to 2.21 percent.

Gold is now trading at $1386 per troy ounce.

We would like to recommend buying gold at the current price and more so at correction.

USA crude shed 12 cents to $49.05 a barrel, while Brent crude fell 18 cents a barrel at $51.96 a barrel.