Safe-haven currencies rally as US-North Korea tensions escalate

Yen Franc Gains May Evaporate as Quickly as They Appeared

"And while risks remain elevated from a geopolitical perspective, valuations are not necessarily excessive, though full". The figures, published in Amazon's latest annual accounts for its European online retail business, are likely to reignite the debate about usa tech companies using complex crossborder arrangements to minimize the tax they pay across the continent.

Read:Few investors are excited about stocks.

Safe-haven demand rose after North Korea said it was "carefully examining" a plan to strike Guam, where a USA military base is located, shrugging off President Donald Trump's earlier warning that further threats to the United States will be met with "fire and fury". One measure of financial risk are the South Korean sovereign credit default swap (CDS) spreads, with IHS Markit data indicating that South Korean CDS spreads widened in July following North Korea's ICBM tests, and spiked up further this week following North Korea's threat to attack Guam.

For the week, the Dow is down 1.1%, its biggest one-week drop since November.

Australian shares were down 1.3 percent, set for a weekly loss of 0.6 percent.

Apart from geopolitical worries, some technical analysts like Tom McClellan, editor of the McClellan Market Report, blamed seasonality for this week's retreat given August's record as a weak month for stocks.

Biswas: If worldwide investors fear that the probability of a military conflict on the Korean peninsula is rising, they will likely reduce their exposure to global growth assets, such as Asian equities and Asian currencies... as they fear that the world economy and Asian countries near North Korea could suffer economic dislocation and trade disruption in the event of a conflict.

The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday.

The yield on the benchmark 10-year U.S. Treasury note fell to 2.253 percent from its U.S. close of 2.282 percent on Tuesday. The Federal Reserve, which raised its key interest rate in March and June, has signaled it plans a third rate hike before the end of this year.

More news: Tesla's $1.8B Bond Sale…Wait, I Though It Was $1.5B?

While stocks have declined this week, the sell-off has not been dramatic.

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.

Shire fell 1.1%, as the pharmaceutical firm shares were hit by a downgrade to Equal Weight from Overweight by Barclays.

A breakdown in high-yield bonds that began five days ago showed up in equities as stocks with the worst credit ratings led losses and balance sheet health separated the winners from losers.

All three USA stock market indices were down Wednesday morning. According to the Associated Press, South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent.

An editorial in China's state-run Global Times (http://www.globaltimes.cn/content/1060791.shtml), published late Thursday local time, added to the pressure on Asian markets.

The consequences of any USA strike could be catastrophic for neighboring countries such as South Korea and Japan where thousands of US military personnel are stationed.

"After today's data and commentary from Dudley, if we see even a near-miss on CPI tomorrow, I think the dollar has got quite a bit of room to sell off", Sweeting said.

SALES SLUMP: J.C. Penney sank 18.9 percent after the struggling department store chain reported quarterly results that fell short of Wall Street's expectations.

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