Stocks, dollar extend slide as US, North Korea tensions intensify

GBP  JPY 4 Hours Chart

GBP JPY 4 Hours Chart

The Swiss franc and the Japanese yen are often sought in times of geopolitical tension and have logged big gains against the dollar this week after U.S. President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States.

But the yen added to an already-strong weekly rally of close to 1.5 percent, hitting its highest in nearly four months versus the dollar at 108.73 yen.

Disappointing economic data releases weighed on both sides of the Atlantic today with a negative goods trade balance for the United Kingdom (-0.1% versus expectations of 1.4%), higher unemployment claims from the U.S. (244,000) and also a negative month-on-month PPI figure for the USA (-0.1%).

Traders took heart in a measure of USA consumer prices that increased only slightly in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.

The S&P 500 dropped the most since May and MSCI's gauge of stocks across the globe .MIWD00000PUS lost 1.1 percent in its third straight day of declines, as it pulled further back from all-time highs.

United Kingdom tries to counter claims it's unprepared for Brexit talks
The first three formal position papers will be published ahead of the talks at the end of the month, the department said. The joint comments by Hammond and Fox came after weeks of clashes over the UK's future outside the bloc.

MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1.55 percent, its biggest one-day loss since mid-December.

The pan-European FTSEurofirst 300 index (.FTEU3) lost 1.11 percent. "Pretty remarkable, perhaps even extraordinary, considering", said Tim Ash, strategist at fund manager BlueBay.

Investor focus now turns to Friday's U.S. consumer price index data.

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

"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.

Ton for Shikhar Dhawan, turn for Sri Lanka
Wridhiman Saha and Hardik Pandya were at crease with 13 and 1 respectively when stumps were drawn for the day. In doing so they took India past 400 in the 110th over, something that seemed unlikely at stumps on day one.

It was down 0.2 percent at 108.98 yen, after retreating 0.7 percent on Thursday.

"There are four more [inflation] prints between now and the December FOMC meeting and we expect the Fed to remain data-dependent, if a touch more cautious", TD Securities said in a research note. The 30-year bond was last up 4/32 in price to yield 2.7871 per cent, from 2.794 per cent late on Thursday.

Spot gold inched down 0.1 percent to $1,284.64 per ounce as of 0616 GMT, but was set for a weekly gain of over 2 percent.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in US crude inventories, leaving prices volatile.

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Giroud wins thriller for Arsenal
Jamie Vardy put the visitors ahead from Marc Albrighton's cross on the half-hour mark, only for Danny Welbeck to strike level on half-time.

US crude rose 0.41 percent to $48.79 per barrel and Brent was last at $52.01, up 0.21 percent.

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