Markets

Russian Federation and Germany weigh in on North Korea war rhetoric

Russian Federation and Germany weigh in on North Korea war rhetoric

Asked how Moscow would act in case of a military conflict between the USA and the North, Lavrov answered it would do everything it could to prevent the worst-case scenario.

Fawad Razaqzada of Forex.com told Reuters "the war of words between the leaders of the USA and North Korea continue to dominate investor sentiment".

The benchmark US yield on Thursday was just above 2.2 percent, at its lowest level since late June, as investors bought up Treasuries, a classic safe harbor. North Korea had responded with a threat to land a missile near the U.S. Pacific territory of Guam.

Many world stock markets have hit record or multi-year highs in recent weeks, leaving them vulnerable to a sell-off, and the tensions over North Korea have proved the trigger.

S&P 500 e-mini futures were down 0.2 percent, hinting at weakness on Wall Street later in the day.

"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.

The pan-European FTSEurofirst 300 index lost 1.06 percent and MSCI's gauge of stocks across the globe shed 0.17 percent.

Investors will get an update on consumer price inflation, watched for its influence on the Federal Reserve's interest-rate thinking, while shares of Snap Inc. and Nvidia Corp. may draw attention after their earnings releases late Thursday. It is poised to end the week down 1.9 percent.




Other markets: Asian markets had another tough day (http://www.marketwatch.com/story/asian-markets-extend-selloff-in-face-of-north-korean-crisis-2017-08-10), while the Hong Kong Hang Seng Index and the South Korea Kospi dropped 2.5% and 3.2%, respectively, for the week.

Japan is the world's biggest creditor nation and there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty.

"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. The dollar index slipped to a one-week low on Friday after the U.S. data.

The dollar index fell 0.3 percent, with the euro up 0.36 percent to $1.1812. It is on track for a weekly loss of 2 percent.

"Yuan is expected to remain relatively steady or strong compared to regional peers", Scotiabank said in a note on Thursday.

OIL: Benchmark U.S. crude lost 36 cents to $48.23 per barrel on the on the New York Mercantile Exchange.

The commodity touched over $1,284.40 an ounce on Wednesday, which marked the highest intraday price in nearly two months. They plunged 2 percent on Thursday on fears of slowing demand and lingering concerns over a global oversupply.