S&P 500, Nasdaq, Dow Fell Lower on August 10 amid Global Tensions

S&P 500, Nasdaq, Dow Fell Lower on August 10 amid Global Tensions

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

The aggressive rhetoric sparked significant demand for defensive assets with the Swiss franc, yen and gold gaining significant ground.

US stocks have risen week after week this year - with the S&P up more than 9 per cent - in extremely low volatility, as strong corporate earnings and an improving global economy offset disappointment that US President Donald Trump's promises to lower corporate taxes and implement a massive infrastructure spending have so far failed to see the light of day. "It's unbelievable 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.

10-Year Treasury Yield 2.24% -0.01%. Bond and gold prices, traditional havens for nervous investors, were little changed, and the VIX, a measure of how much volatility investors expect in stocks, fell 3.3 percent following a 44.4 percent jump the day before.

The S&P 500 index had its biggest one-day drop in nearly three months on Thursday as investors fled riskier assets, with technology stocks leading the charge, in response to an increasingly aggressive exchange of threats between the United States and North Korea. The euro rose to $1.1812 from $1.1774.

"Of course, it's all come at a time when share markets are due for a correction, so North Korea has provided a flawless trigger".

The blue chip FTSE 100 index ended the session 1.1 percent lower at 7,309.96, its worst week since March. "Pretty remarkable, perhaps even extraordinary, considering", said Tim Ash, strategist at fund manager BlueBay.

"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY. Dollar/loonie was last down 0.3% and below the 1.27 mark after rising to a one-month high of 1.2752 earlier in the day.

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The Korean won also continued to skid, sliding 0.3 percent to 1,145 won to the dollar, after earlier sinking to its lowest level in a month.

"This situation is beginning to develop into this generation's Cuban missile crisis", said ING's Robert Carnell in a morning note to clients.

Following the sell-off seen in the previous session, stocks are regaining some ground during trading on Friday.

United Kingdom mid cap stocks also came under pressure, falling 0.8 percent as shares in Dixons Carphone slumped more than 7 percent to its lowest level since the aftermath of the Brexit vote last June, driven down by a double downgrade from a star broker.

In the Dow, declines in shares of Merck and those of DuPont, recently down 0.9 per cent and 0.8 per cent respectively, outweighed gains in shares of Apple and those of Microsoft, recently up 1.3 per cent and 0.7 per cent respectively.

USA crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent. The industrial bellwether metal copper was set for its first weekly drop in five weeks.

The remarks followed a new report asserting that USA intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles.

"US markets had previously been becalmed amidst the Goldilocks scenario of strong profit growth, low interest rates and full valuations".

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