Dollar at eight-week low vs yen as North Korea tensions simmer
Sterling falls as United Kingdom inflation stays flat at 2.6 per cent
Bitcoin hits new all-time record high and goes above $4300
Asia stocks extend rally as North Korea fear recedes
TSX rallies shortly after open as North Korea tensions ease
N. Korea nerves push stocks down for third day
12 Agosto 2017, 10:53 | Dolorita Barahona
Daily September E-mini Dow Jones Industrial Average
On Thursday, Donald Trump said North Korea should be "very, very nervous" if it acted against the US.
In Europe, Britain's FTSE 100 was down 1.1 percent to 7,306, while France's CAC 40 fell 1.1 percent to 5,058.
There were falls of almost 2% on South Korea's Kospi and Hong Kong's Hang Seng, with markets in mainland China and Australia also down - taking their cues from sharp losses on Wall Street earlier.
If North Korea launches an attack that threatens the US, China should stay neutral, but if the US attacks first and tries to overthrow North Korea's government, China will stop them, a Chinese state-run newspaper has said. BNY Mellon FX strategist Neil Mellor told Reuters that in recent years, "the market hasn't really reacted to things on the Korean Peninsula" because in the past "it [has been] largely North Korean sabre-rattling".
Traders turned towards safe-haven assets such as gold, helping the precious metal touch a two-month high, and the Japanese Yen rose.
CURRENCIES: The euro slipped 0.1 percent to $1.1176 while the dollar was steady at 109.20 yen.
The Dow and S&P 500 inched higher on the day but they both posted their largest weekly percentage drops since late March. Investors, meanwhile, are fleeing to more stable investment markets. Shanghai's main index also tumbled 1.6 percent to 3,208.54 while Australia's S&P/ASX 200 dropped 1.2 percent to 5,693.10.
The index was also dragged lower after Beijing ordered probes into three major Chinese social networking platforms over outlawed content.
Drops among cyclical sectors weighed on the index, with heavyweight miners Rio Tinto, BHP Billiton, Anglo American and Glencore all dropping between 2.9 to 3.1 per cent as tensions between the United States and North Korea hit riskier assets, including metals prices.
The dollar was further weighed on Friday by the soft USA inflation data.
"We saw a tentative recovery in risk appetite yesterday from the sell-off inspired by North Korea but I think justifiably that move is fading a little bit today", said Saxo Bank's head of FX strategy John Hardy.
Shares of Snap were off about 15 percent premarket following the social media company's earnings that came below estimates and a slew of price target cuts.
The technology sector .SPLRCT was the S&P's biggest drag with a 2.2 percent drop.
After touching a more than two-month high at US$1,291.86, spot gold last added 0.2 per cent to US$1,288.81 an ounce.
However, markets remained focused on geopolitical crisis, as angry threats from Washington and Pyongyang stoke fears of a catastrophic miscalculation with global consequences.
In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day.
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