North Korea Has Markets Nervous But Not Panicked

A Secret Service agent checks on the Oval Office of the White House in Washington Friday Aug. 11 2017 as the West Wing of the White House in Washington is undergoing renovations while President Donald Trump is spending time at his golf resort in New J

NEW YORK, Aug 10 (Reuters) - Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea. Trump's comments came after a Washington Post report (https://www.washingtonpost.com/world/national-security/north-korea-now-making-missile-ready-nuclear-weapons-us-analysts-say/2017/08/08/e14b882a-7b6b-11e7-9d08-b79f191668ed_story.html?utm_term=.0938becb046e) that North Korea has built a miniaturized nuclear warhead.

Developments regarding the situation with North Korea may remain in focus next week, although traders are also likely to keep an eye on reports on retail sales, housing starts, and industrial production.

With the rhetoric rumbling on, Europe's top-rated German bond yield held near six-week lows.

Japanese markets were closed for a holiday but the tense mood dragged Asian shares lower and an MSCI index of stocks across the globe was on track to post its largest weekly drop since the week before Donald Trump won the USA presidential election in November.

Wall Street saw a stock sell-off on Thursday as rising tensions between the US and North Korea filled investors with worry.

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".

South Korea's Kospi fell 1.8% to an 11-and-a-half-week low, taking its losses this week to 3.2%.

Many world stock markets have hit record or multi-year highs in recent weeks, leaving them vulnerable to a selloff, and the tensions over North Korea have proved to be the trigger. With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month. A gauge of volatility on the S&P 500, the VIX hit its highest reading for over a month.

Burnley stun Premiership Champions, Chelsea in a five goal thriller
It was indeed a splendid and one-sided first half for the visitors, who simply outplayed the 10-man reigning champions. Nigeria's Victor Moses could only watch from the stands as he is on suspension for the Premier League opener.

Australian shares fell to near three-week lows in a broad-based selloff.

Asian stocks are mostly lower as investors ponder escalating tensions over North Korea's nuclear ambitions.

The strength in the sector came amid a jump in the price of gold. It was down 0.2% at ¥108.98, after retreating 0.7% on Thursday.

USA producer prices Thursday disappointed, as traders await consumer price inflation figures later Friday.

Markets are now awaiting United States consumer price data for July, due later in the session.

The dollar weakened after news that USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

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. Crude futures extended losses on the fear of slowing demand and lingering concern over a global oversupply.

USA crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent.

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