Global stocks sell off stops at Wall Street

Lloyd Doyle
August 13, 2017

South Korea's KOSPI fell 1.7 percent on Friday to its lowest since May 24, but its losses for the week were a relatively modest 3.2 percent.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.

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.

Wall Street stocks posted their biggest declines in almost three months Thursday as President Donald Trump doubled down on his warnings to North Korea over its nuclear program.

In the latest economic data, the consumer-price index (http://www.marketwatch.com/story/us-consumer-inflation-remains-soft-in-july-cpi-shows-2017-08-11) rose a seasonally adjusted 0.1% in July, its fifth straight month of softness, raising more questions about whether inflation will eventually rise to hit the Federal Reserve's 2% annual rate target.

The Standard & Poor's 500 index rose 5 points, or 0.2 percent, to 2,444 as of 12:28 p.m.

Wilmar International slipped 6.4 per cent or 22 cents to $3.20; Hongkong Land lost 2.1 per cent or 16 United States cents to US$7.34.

There were fewer signs of anxiousness in the markets Friday.

USA stock futures were pointing to a weaker open on Friday.

The Labor Department said consumer prices edged up 0.1% in July following no gain in June.


Plus, Macy's spiking call volume; Hertz's big day; and a continued slide from TRIP stock.

In Europe, equities dived with London losing 0.6 percent, while Frankfurt shed 1.1 percent and Paris fell 1.4 percent.

Macy's shares closed down 10.2 percent and Kohl's fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

The Russian dollar-traded index RTS was down 1.49 percent, and ruble-traded MICEX fell 1.29 percent by midday.

Biotechnology, tobacco, and transportation stocks also saw considerable strength, while steel stocks extended a recent move to the downside. The yield on the 10-year Treasury note slipped to 2.19 percent from 2.20 percent late Thursday. The company also said sales at its established stores declined for the fourth-straight quarter.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in US crude inventories, leaving prices volatile.

Benchmark U.S. crude was down 21 cents to $48.38 a barrel on the New York Mercantile Exchange.

The major index futures are now pointing to a modestly higher open for the markets, with the Dow futures up by 21 points. While the German DAX Index closed just below the unchanged line, the UK's FTSE 100 Index and the French CAC 40 Index both tumbled by 1.1%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.47 percent lower. Australia's S&P/ASX 200 dropped 1.2 percent.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors will repatriate funds should a crisis materialize.

Other reports by Iphone Fresh

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