European markets end lower amid geopolitical tensions

European markets end lower amid geopolitical tensions

U.S. President Donald Trump, in his latest warning to North Korea, said military solutions were "fully in place" and referred to American weapons as being "locked and loaded" should the nuclear-armed nation act "unwisely".

The Dow is down 248.80 points, or 1.1 percent.

The Dow Jones industrial average lost 204 points, or 0.9 percent, to 21,844. Major stock indexes across Europe and Asia also posted weekly declines.

"That reset is being triggered by North Korea geopolitical concern and stretched valuations", said Peter Kenny, senior market strategist at Global Markets Advisory Group in NY.

The broad-based S&P 500 shed 0.6 percent to 2,459.50, while the tech-rich Nasdaq Composite Index tumbled 0.8 percent to 6,299.12.

Market analysts expect that the pullback in stocks due to the increasingly aggressive tone in exchanges between Washington and Pyongyang will continue, although investors hope that the selling will not escalate to a correction - a decline of 10 percent or more. The major index futures are now pointing to a modestly higher open for the markets, with the Dow futures up by 21 points.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.

Simmering tensions between the US and North Korea continued to weigh on investors.

Nuclear nerves wipe $1 trillion off world stocks
Crude futures, meanwhile, extended losses on fears of slowing demand and lingering concerns over global oversupply. The Russell 2000 index of smaller-company stocks gave up 19 points, or 1.4 percent, to 1,377.

"From a geopolitical perspective, we understand why the escalation in tensions will have shaken some of the complacency out of investors", said Eric Wiegand, senior portfolio manager at U.S. Bank Private Client Wealth Management.

Instead, investors turned to assets that tend to benefit in times of geopolitical and financial stress.

Retailers were also falling Thursday.

J.C. Penney slumped as much as 18.25 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.

Tokyo's Nikkei 225 share index closed down 1.3 per cent at its lowest since June 1 as the strong yen hit exporters, while South Korea's KOSPI index fell 1.1 per cent to seven-week lows. On the Nasdaq, 1,462 issues rose and 1,227 fell. Meal kit company Blue Apron plunged 14.6 percent after reporting a decline in customers.

Germany's consumer price inflation accelerated to a three-month high in July, final data from Destatis showed Friday.

In other news, United States wholesale inflation dropped in July, the first contraction in almost a year and another data point that could weaken the case for the Federal Reserve to raise the benchmark interest rate again later this year. In three days. the Nasdaq has lost 2.6% - the most since last September. Yields on bonds move inversely to their price.

Federal funds futures suggested the chance of rate hike in December fell to 40 percent from 42 percent shortly before the release of the data.

Related Articles

  • Wendell David Associates Inc. Reduces Position in Hewlett Packard Enterprise Company (HPE)

    Wagner Bowman Management Corp increased its position in shares of Hewlett Packard Enterprise by 12.5% in the first quarter. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website .
    Jammu and Kashmir shutdown over Article 370

    Jammu and Kashmir shutdown over Article 370

    She said that Prime Minister 's approach was constructive. "If 35 (A) is repealed then the Article 370 will also be weakened", said Rana.
    Wall St stops stocks' bleeding, for now; gold, yen tick up

    Wall St stops stocks' bleeding, for now; gold, yen tick up

    On the currency markets, the pound was marginally higher against the USA dollar at 1.30 and up 0.1% versus the euro at 1.11. Wilmar International slipped 6.4 per cent or 22 cents to $3.20; Hongkong Land lost 2.1 per cent or 16 USA cents to US$7.34.
  • Gold steady near 2-month highs on N. Korea tensions

    Gold steady near 2-month highs on N. Korea tensions

    As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 2.212%. Penney (JCP) is also among the companies due to report their results before the start of trading on Friday.
    Usher Allegedly Did Sleep With Accuser

    Usher Allegedly Did Sleep With Accuser

    The employee said she asked Usher for a picture and he promised to return and pose with her, but never did. Sharpton said she was picked from the crowd at an Usher concert two years ago in Atlantic City, N.J.
    Taylor's groping case: Judge ruled out the former DJ

    Taylor's groping case: Judge ruled out the former DJ

    During the trial Swift told jurors that Mueller deliberately groped her bottom during a fan meet-and-greet session. Mueller sued Swift after her team reported the alleged assault to his bosses at a country music station.
  • Iran defies U.S.  with increased budget for missile programme

    Iran defies U.S. with increased budget for missile programme

    A total of 240 lawmakers voted for the bill, out of the 244 parliamentarians present. Sanctions against Iran is mainly in response to Tehran's growing missile programme.
    Arsenal offer Alexis Sanchez new £300000-a-week contract

    Arsenal offer Alexis Sanchez new £300000-a-week contract

    When asked if Arsenal have received bids for Sanchez, Wenger replied: "I can not tell you that". The current contract Sanchez with Arsenal expires in the summer of 2018.
    Leaders of US, France Discuss N. Korean Issue

    Leaders of US, France Discuss N. Korean Issue

    Professor Lucas said: "The Chinese and the United States have been talking behind the scenes for months about what to do". The phone call with the French President came hours after Trump spoke with Chinese President Xi Jinping.
  • Federer storms into semis, but Anderson goes down in Montreal

    Federer storms into semis, but Anderson goes down in Montreal

    Holland's world No.52 Haase fought back after losing the first set against Argentina's Diego Schwartzman to win 4-6 6-3 6-3. Just to get back to number one once again in your career is a big deal, especially later in your life.
    Premier League 2017/18: Arsenal 4-3 Leicester, Player Ratings

    Premier League 2017/18: Arsenal 4-3 Leicester, Player Ratings

    Danny Welbeck levelled matters in first-half stoppage time, completing a fast-paced, pulsating first half of action. Last season , two of them were not in Europe. "Going forward and character wise we have been great".
    Esports at the olympics in 2024 ?

    Esports at the olympics in 2024 ?

    It seems like the gap between eSports , video games and the Olympics is starting to close in. Let us know what you like about Geek by taking our survey .