Published: Sun, August 13, 2017
IT | By Amos Hawkins

TSX falls as North Korea tensions spur flight to safety


At a briefing on opioid addiction at his golf course in Bedminster, New Jersey, Mr Trump warned North Korea not to make any more threats against the United States, adding that it would be "met with fire and fury like the world has never seen". In a note to investors, Paul Christopher, head global market strategist, and Tracie McMillion, head of global asset allocation, suggest, "the threat of a nuclear weapon is certainly more serious than previous threats, but that threat also may increase the probability of a diplomatic solution".

In an apparent response to Trump's tweet, a statement issued by North Korea's official KCNA news agency claimed the president is "driving the situation on the Korean peninsula to the brink of a nuclear war".

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday. Australia's S&P/ASX 200 dropped 1.2 percent.

The Dow Jones industrial average closed up 14 points, a gain of 0.07 percent, the Nasdaq composite rose almost 40 points or 0.64 percent and the S&P 500 gained 3 points or 0.13 percent.

In the United Kingdom, the stock of TV giant ITV was down 1.9 percent in early trading, and Sky shares were down 0.5 percent, while Germany's ProSiebenSat.1 fell 1.2 percent.

Energy stocks retreated 0.5 percent, despite higher oil prices.

In early trading, France's CAC 40 fell 1.5 percent to 5,141.37 points and Germany's DAX lost 1.2 percent to 12,144.54.

Stocks tumbled today after President Donald J. Trump said his "fire and fury" comment to North Korea "maybe wasn't tough enough".

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European shares were also lower following reports that a auto had rammed a group of soldiers in Paris, injuring six before speeding off in what officials identified as a suspected terrorist attack.

The Nasdaq Composite was down 30.74 points, or 0.48 percent, at 6,339.72.

Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts.

The Dow slid as declines in shares of Apple and those of Goldman Sachs, recently down 2.3 percent and 1.7 percent respectively, outweighed gains in shares of McDonald's and those of Coca-Cola, recently up 1.4 percent and 0.5 percent respectively.

The Vix, also known as the "fear index", closed at 10.96, its highest level in a month. The company posted better-than-expected quarterly earnings but its sales missed expectations.

Nevsun Resources Ltd offset some of the material group's gains, plunging 18.4 percent to C$2.685 after the company reported disappointing quarterly results.

The US dollar fell to 110.48 yen from 110.72 yen late on Monday.

Benchmark U.S. crude rose 23 cents to settle at $48.82 a barrel on the on the New York Mercantile Exchange. The euro edged down to $1.1727 from $1.1751. Netflix lost 1.5 per cent.

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