Stocks drop as Korea tension saps mood

A trader works on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange

A trader works on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange

With the tense mood pushing European shares down for a third day and Wall Street set to fall again, global stocks were on course for their worst week since Donald Trump won November's USA presidential election.

Traders took heart in a measure of US 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.

Perrigo was up 9.5 percent after the company raised its full-year adjusted earnings forecast.

China weighed in on the standoff late Thursday, saying in an editorial in state-run Global Times (http://www.globaltimes.cn/content/1060791.shtml) that Beijing will intervene if the US strikes first against North Korea.

"It's wonderful when you consider the headlines just how calm the equity markets are, how they've taken things in their stride", said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina. The Nasdaq composite lost 20 points, or 0.3 percent, to 6,349.

USA equities steepened their losses late in the session after President Donald Trump said his earlier warnings to North Korea may not have been tough enough.

Wall St higher but on track for deep weekly losses
Shares of Kohl's were down 8.4 percent, while Macy's fell 4 percent after the department store operators reported a fall in sales. The technology sector was the S&P's biggest drag with a 2.2 percent drop.

Gold and bond prices were headed higher.

Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific territory of Guam. On the Nasdaq, 1,846 issues fell and 953 advanced favoring decliners.

Trump, whose threat this week to bring "fire and fury" was dismissed by North Korea, said Thursday that statement might not have been "tough enough".

Gold miners Randgold Resources and Fresnillo were among the only gainers on the FTSE, up 1.9 to 2.3 percent as investors rushed to the safety of gold.

A Reuters Datastream index of more than 7,000 stocks across the globe saw its market capitalization drop from a record high $61.36 trillion on Monday to $60.43 trillion at the close on Thursday. Twenty-First Century Fox gave up 46 cents, or 1.6 percent, to $27.57.

The influential financial stocks were among the biggest drags on the index, with Royal Bank of Canada down 1.0 percent to C$93.36, and Manulife Financial Corp falling 2.8 percent to C$24.93. The Korea tensions though have seen both USA and European markets this week push back expectations of when the Fed and ECB might hike interest rates.

HRTC buses swept away in landslide, 50 feared killed
He also said that the rescue operations is going on war footing. "Immediate relief will be provided", Mr Singh said. Himachal Pradesh Transport Minister GS Bali the number of those feared dead could be as high as 50.

The S&P 500 is down 38.62 points, or 1.6 percent.

While gold, a safe-haven favorite, pared some gains, it was last up 1.2 percent, at around its highest since mid-June. Macy's sank 10.3 percent and Kohl's lost 5.8 percent.

US crude oil +0.4% at $49.76/bbl.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month.

The price of gold rose 1% to 1,274.39 United States dollars per ounce, with Fresnillo and Randgold Resources up 72p to 1,544p and 200p to 7,380p respectively.

Trump tweets backhanded warning to North Korea, mentions upgraded USA nuclear arsenal
Trump allies have echoed his obsession, forcing the government to waste money in a futile effort to prove Trump's inauguration was as popular as Obama's.

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