Internacional

Wall Street lower on US-North Korea tensions

Wall Street lower on US-North Korea tensions

The stock lost $142.20 to $1,906.80.

"The data confirms the Fed will have a wait-and-see attitude", said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.

Reuters data show a 22 percent perceived chance for a rate hike after the Fed's December meeting.

The CBOE Volatility Index, better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, rose the most in about 12 weeks.The index ended up 4.93 points at 16.04, the highest level since November 8, when Trump was elected president.

Buying interest was somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continued to raise geopolitical concerns.

Nervous investors drove shares lower earlier in the week, after President Trump declared Tuesday that the US would react with "fire and fury" to further nuclear provocations from North Korea.

This undated picture released by North Korea's Korean Central News Agency (KCNA) via KNS on March 7, 2017 shows the launch of four ballistic missiles by the Korean People's Army (KPA) during a military drill at an undisclosed location in North Korea. The Dow is down 98.98 points or 0.5 percent at 21,949.72, the Nasdaq is down 65.83 points or 1 percent at 6,286.50 and the S&P 500 is down 16.77 points or 0.7 percent at 2,457.25. It has fallen more than 1 percent on only three days this year.

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the election.

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.

Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors will repatriate funds should a crisis materialize. The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56.

The latest USA economic data cemented expectations that inflation will remain subdued amid a robust labour market.

"If the data continues to come in on the softer side, the market might start to price the Fed staying on hold this year", said Sireen Harajli, FX strategist at Mizuho in NY. It has weakened 1.9 percent against the dollar this week, making it the worst performer among global emerging-market currencies.

In the bond market, treasuries are extending the notable upward move seen in the previous session. Wall Street was expecting more inflation.

Benchmark 10-year notes last rose 7/32 in price to yield 2.1888 percent, from 2.211 percent late on Thursday. Copper rose 1 cent to $2.91 a pound.

And in a textbook-type cross-asset move toward safety in times of trouble, the Japanese yen hit an eight-week high against the USA dollar while spot gold also reached a two-month high. USA gold futures gained 0.50 percent to $1,296.60 an ounce. Markets in greater China mirrored the slide in global equities.