Dow streak of records ends amid US-North Korea tensions

Dow streak of records ends amid US-North Korea tensions

North Korea claimed "only absolute force" can work on someone as "bereft of reason" as Trump and detailed plans to fire a salvo of missiles into waters around the U.S. Pacific territory of Guam.

Traditional safe-haven currencies including the Swiss franc and Japanese yen rose against the USA dollar, while those from emerging markets slid.

Keeping up his tough talk, U.S. President Donald Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face the consequences, and suggested that his earlier threat to unleash "fire and fury" on North Korea was too mild.

The Standard & Poor's 500 index fell 5.99 points, or 0.2 percent, to 2,474.92.

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.

The Japanese yen strengthened 0.24 percent versus the greenback at 110.04 per dollar.

Meanwhile, gold stocks are bucking the downtrend, driving the NYSE Arca Gold Bugs Index up by 1.2 percent.

The euro was 0.18 percent lower against the greenback but remains the best-performing G10 currency so far this year with gains of more than 11 percent against the dollar.

CURRENCIES: The dollar slipped to 109.05 yen from 109.20 while the euro weakened to $1.1763 from $1.1773.

Slick Britain win shock 4x100 relay gold as Bolt pulls up
Hosts Great Britain took the gold medal with a time of 37.47 seconds. "He is still the best in the world", Gatlin said. Beijing worlds silver medalists China finished fourth with second-leg runner Xie Zhenye just coming back from injury.

The focus on North Korea has largely overshadowed a Labor Department report showing an unexpected drop in USA producer prices in the month of July.

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.

The Korean won fell more than 1 percent at one point and is now down 0.5 percent.

Investors, who took the North Korea report from Japan in their stride earlier in the day, lost their appetite for risk after Trump's comments to reporters during his vacation at his golf club in New Jersey. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.5 basis points at 2.226 percent.

The decline in equity markets and a dip in United States bond yields triggered fresh demand for precious metals and gold pushed to fresh 2-month highs around $1,288.

Guam which is more than 3,000 km (2,000 miles) to the southeast of North Korea, is home to about 163,000 people and a U.S. Navy base that includes a submarine squadron and a Coast Guard group, and an air base.

Spot gold added 1 percent to $1,272.83 an ounce.

Pan American Silver Corp, which reported second-quarter results late Wednesday, rallied 10.7 percent to C$22.47. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. Gold gained 0.54 percent to $1,266 an ounce, but that is only its highest in less than a week. The tech-heavy Nasdaq composite lost 2.1 percent to 6,216.87.

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