markets slide dollar slumps as north korea fears spike
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Markets slide, dollar slumps as North Korea fears spike

Arab Today, arab today

Arab Today, arab today Markets slide, dollar slumps as North Korea fears spike

Equity screens were a sea
Hong Kong - Arab Today

Equity screens were a sea of red in Asia Friday and the dollar slumped against the yen as investors fled to safe haven assets after US President Donald Trump doubled down on his North Korea rhetoric.

Traders reacted with dismay to his fresh warning Thursday that his earlier threat to unleash “fire and fury” on the reclusive nuclear-armed state may not have been “tough enough”.

Asian stocks sank in the wake of the worldwide downturn triggered by the remarks, after Wall Street indices suffered their biggest losses in nearly three months.

The dollar was testing the 109 yen barrier in morning forex trade, while gold, another classic safe haven asset, was trading at around $1,285 per ounce, up more than two percent this week.

With Japanese markets closed for a public holiday, Hong Kong led the downward charge, with Sydney, Shanghai and Seoul all deep in negative territory. 

“The latest threats over North Korea have finally escalated to the point where the market has been obliged to react,” said Ric Spooner, an analyst at CMC Markets in Sydney.

“This has injected the first note of volatility into US stock markets for some time.”

advertisement

Analysts warned the softening dollar could test June’s low of 108.82 yen and even the 2017 trough of 108.13 yen.

– ‘Trump talk trashes markets’ – 

The greenback also came under pressure after New York Federal Reserve President William Dudley cautioned it would “take some time” for US inflation to reach the bank’s two percent target, the latest warning price pressures remain muted.

US producer prices Thursday disappointed, as traders await consumer price inflation later Friday. 

“Both (PPI measures) were well below consensus and give us no hope that consumer price inflation is going to materially beat expectations,” said Chris Weston, chief market strategist at IG Markets.

However, market watchers said equity markets remained focused on the deepening geopolitical crisis, as angry threats from Washington and Pyongyang stoke fears of a catastrophic miscalculation with global consequences.

“Most certainly the market was hoping for some upbeat assessment from Fed Bill Dudley, but it’s silly to put the blame game on him when in reality the market attention was focused elsewhere,” said Oanda’s Stephen Innes.

“Not to mince views here, it was Trump talk that trashed the equity markets, nothing more nothing less.”

In commodities trading, crude was pushed lower by an OPEC report showing production by cartel members increased slightly in July, including by Saudi Arabia which had championed efforts to extend an output freeze.

Comments from Russian state energy giant Gazprom about reopening a closed field once the deal to curb supply expires also depressed sentiment.

“On many occasions, we’ve also heard from the Russians, and from Russian oil producers, that once the deal is complete and free production reigns again that Russia will prime the pump,” said Greg McKenna, an analyst at AxiTrader.

— Bloomberg News contributed to this report —

 – Key figures around 0230 GMT –

Tokyo – Nikkei 225: Closed for holiday

Hong Kong – Hang Seng: DOWN 1.4 percent at 27,055.42 

Shanghai – Composite: DOWN 1.0 percent at 3,236.96 

Euro/dollar: DOWN at $1.1764 from $1.1777 

Pound/dollar: DOWN at $1.2976 from $1.2979 

Dollar/yen: DOWN at 109.05 yen from 109.21

Oil – West Texas Intermediate: DOWN 12 cents at $48.47 per barrel  

Oil – Brent North Sea: DOWN 16 cents at $51.74 

New York – Dow: DOWN 0.9 percent at 21,844.01 (close)

London – FTSE 100: DOWN 1.4 percent at 7,389.94 points (close)

source:AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

markets slide dollar slumps as north korea fears spike markets slide dollar slumps as north korea fears spike

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

markets slide dollar slumps as north korea fears spike markets slide dollar slumps as north korea fears spike

 



GMT 12:48 2016 Sunday ,27 November

Cilic, Dodig push Croatia to brink of Davis Cup

GMT 05:24 2017 Thursday ,28 December

Erdogan says 'terrorist' Assad cannot be part of Syria

GMT 12:59 2016 Saturday ,05 November

WB welcomes economic reforms in Egypt

GMT 18:40 2016 Saturday ,05 November

Egyptian GDRs in London down

GMT 10:57 2017 Wednesday ,06 December

Peru striker Guerrero has doping ban extended

GMT 17:51 2017 Tuesday ,07 March

Trump Signs New Travel Ban on Six Muslim Countries

GMT 10:30 2017 Wednesday ,06 September

Saudi Information Ministry praises media role during Hajj

GMT 15:29 2017 Tuesday ,24 January

Mind games really do help your brain

GMT 06:55 2015 Thursday ,01 October

Boston Red Sox beat Yankees

GMT 08:17 2017 Monday ,28 August

Bahrain celebrates World Humanitarian Day 2017

GMT 02:07 2017 Tuesday ,28 February

Opposition seeks Russian support at Syria talks

GMT 11:06 2017 Wednesday ,27 December

Bahrain tourism projects valued at over $ 13 billion

GMT 20:35 2011 Tuesday ,10 May

New exhibition of Islamic ornaments

GMT 19:52 2016 Friday ,19 August

Nice joins wave of French towns banning burkinis

GMT 03:46 2017 Wednesday ,06 September

US-backed Syrian forces seize Raqqa mosque

GMT 22:22 2017 Friday ,15 December

BDF Military Museum open on National Day

GMT 09:47 2015 Wednesday ,02 December

Ryanair launches court action against Google, eDreams

GMT 10:46 2017 Wednesday ,22 March

Japan's February trade surplus hits multi-year high
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday