Published: Sat, August 12, 2017
Markets | By Erika Turner

Dow Jones Industrial Average Futures Fall on North Korea Risk, Disney Earnings

Dow Jones Industrial Average Futures Fall on North Korea Risk, Disney Earnings

The U.S. Commerce Department announced a preliminary decision Tuesday evening to tax aluminum foil from China at a rate of between 16.5% and 81%, based on the subsidies it says it receives from the Chinese government. Hong Kong's Hang Seng was off 0.3 percent. "Geopolitical risks don't really influence Korean markets", he said. The Russell 2000 index of smaller-company stocks gave up 4.02 points, or 0.3 percent, to 1,410.15.

Aug 9 (Reuters) - U.S. stocks were on track for their biggest one-day dip in a month on Wednesday after U.S. President Donald Trump's "fire and fury" warning to North Korea escalated global uncertainty. It fell 0.9 per cent on Wednesday.

KOREAN STOCKS: Investors didn't panic but saw Trump's comments as a chance to take profits, said Seo Sang Young, a market strategist at Kiwoom Securities in Seoul.

The remarks followed a new report asserting that USA intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles.

But while investors appeared to favor safe-haven assets, some bargain seekers helped Wall Street's three major indexes pare losses.

Data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.

Trump has 'some frustration' with Senate leader
Picking fights with the Senate GOP leader - after Trump's on-again-off-again relationship with House Speaker Paul D. Ryan (R-Wis.) - show how hard it will be for Republicans to reach the goals on their agenda heading into the fall.

"With the ongoing problems we have with North Korea there's always the possibility of war", said Dr. Wilson.

The pan-European FTSEurofirst 300 index lost 0.75 percent and MSCI's gauge of stocks across the globe shed 0.40 percent. Only utilities sector stocks eked out a gain on a day of mostly listless trading as investors kept an eye on the latest company earnings and geopolitical news.

The tech-heavy Nasdaq composite bore the brunt of the sell-off, losing 135.46 points, or 2.1 percent, to 6,216.87. Spot gold was 0.1 percent lower at $1,276.78 an ounce after having spiked the previous day to a near two-month peak of $1,278.66. Macy's was down 8.9 percent after the company said its sales continued to decline in the second quarter.

In Europe, Germany's DAX fell 1.1 percent, while France's CAC 40 slid 1.4 percent. Major indexes in Asia closed lower.

The single currency slipped 0.3 percent to $1.1723 and was holding just above a July 28 low of $1.1688. In commodities, crude oil lost momentum after rising overnight on data pointing to declining USA inventories. Brent crude, used to price worldwide oils, gained 10 cents to $52.24 in London.

Early in the fighting after a surprise attack, South Korean and American forces barely clung to a small pocket of the Korean Peninsula with Seoul and all of Korea overrun by the North.

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