North Korea talk drags stocks lower; gold, yen rise

North Korea talk drags stocks lower; gold, yen rise

European stocks have fallen for a third day on Friday and look headed for their worst week since early November previous year, as US President Donald Trump's rhetoric on North Korea over the past few days made investors risk averse.

A statement from the North Korean military called President Donald Trump's warning that the communist nation would face "fire and fury" if it continued its provocations a "load of nonsense".

The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, was up 1.03 points at 11.98 points, its highest level in a month.

USA indexes were set to open lower for the third straight day on Thursday as North Korea's threat to land a missile just short of the US territory of Guam added fuel to simmering tensions with the United States.

This week's increase in tension between North Korea and the US over North Korea's nuclear missile programme is a timely warning for investors to remain diversified, affirms a leading analyst.

The primary indicator of the week, consumer prices have slightly advanced in the month of July in the United States, but less than expected, according to figures released Friday by the ministry of Labour. The Russell 2000 index of smaller-company stocks gave up 0.3 percent, to 1,410.15.

US stocks closed slightly lower Wednesday, making up much of the ground they lost earlier following a rare batch of earnings disappointments by Walt Disney and other big companies.

Spot gold added 0.7 percent to $1,286.00 an ounce.

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Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day.

The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June. In Asia, several indexes closed lower overnight. It is not just North Korea that has the potential to surprise investors. The broader index closed at 2,319.71 points on Friday, down 3.1 percent from a week ago.

The Dow Jones industrial average closed up 14 points, a gain of 0.07 percent, the Nasdaq composite rose almost 40 points or 0.64 percent and the S&P 500 gained 3 points or 0.13 percent. The stock is up 54% so far this year.

London's benchmark FTSE 100 index fell back 1.3 percent, driven by losses in the commodity sector.

In currencies, the yen rose 0.8 percent versus the greenback at 109.2 per dollar, the strongest level for the Japanese currency since mid June.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday. The stock fell $169 to $1,879.98. The u.s. central bank, one of whose tasks is to contain the price rise, does not therefore appear to be obliged to accelerate the pace of the slow tightening of monetary that it has committed.

Shares of Snapchat parent Snap Inc.(SNAP) slid 14% a day after the company's earnings missed forecasts (http://www.marketwatch.com/story/snap-ceos-promise-cant-overcome-declining-ad-rates-stock-heads-toward-new-lows-after-earnings-2017-08-10), and the social-messaging company disclosed that average ad prices fell in the second quarter.

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