Markets extend losses as Korea tensions escalate

Daily Briefing: Trump warning over North Korea hits markets

Japan was closed on a public holiday.

He said the crisis provided a "perfect trigger" for a correction at a time when many markets - including the FTSE 100 - were at or around record highs, leaving them vulnerable to a sell-off if investors think it is time to take profits. But the market quickly bounced back, led by numerous tech stocks that were sinking on Thursday.

If tensions with North Korea de-escalate and the USA economy remains on track, it's easy to see how stocks could quickly climb to new heights.

"Given the great run we've had, seems like some sort of pullback wouldn't be surprising", said Michael Baele, managing director of investments at U.S. Bank Private Wealth Management.

Significant strength was also visible among software stocks, as reflected by the 1.2% gain posted by the Dow Jones Software Index.

A man watches a television screen showing U.S. President Donald Trump, left, and North Korean leader Kim Jong Un during a news program at the Seoul Train Station on Thursday.

"If you strip away what's going on in North Korea, and if you strip away what's going on in Washington, which are things that are tougher to predict, the economy, the global recovery, earnings, it all paints a very positive picture for the rest of the year", Kravetz said.

The market was waiting for United States consumer inflation data on Friday that would offer more clues about future Fed decisions. "Hard to assess political risk is now intruding on this scenario". But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar.

Burnley stun Chelsea at Stamford Bridge
Turns out Morata can play, and his diving header met a classy bit of playmaking from Willian to make it 3-1 in the 69th minute. Captain Cahill was sent off just 14 minutes into the game as Burnley went on rampage, scoring three goals in the first half.

Gold got a boost from Dalio, the mercurial founder of the world's biggest hedge fund, Bridgewater Associates.

Weakness in U.S. Treasury yields may also be supporting the yen, some analysts said. Thursday was the worst one-day percentage drop for all three benchmarks since May 17, according to FactSet data.

Data storage company Seagate Technology (STX) is posting a standout gain within the hardware sector, climbing by 2.1 percent. So do the bottom lines of many major companies.

The market's main backstop in times of strain, gold, hit a two-month high of $1,282 an ounce amid the nervousness. Following two days of meetings in Abu Dhabi, leading producers reiterated their commitment to output caps set earlier this year to support prices.

Amid the hot rhetoric, US stocks sold off sharply on Thursday, with the S&P 500 falling more than 1 percent.

Meanwhile, the Russell 2000 index of small-cap stocks looked poised for a weekly drop of 2.8%, its biggest one-week decline since February 2016.

The RBNZ kept interest rates unchanged at a record low of 1.75 percent on Thursday. It is poised to end the week down 1 percent.

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