On 09 August, 2017 – Global stock indices were lower

Investors sought safe havens as geopolitical concerns ratcheted up.
United States
Stocks were lower Wednesday though selling pressure was somewhat subdued. The Dow Jones industrials were down 0.2 percent, the Nasdaq lost 0.3 percent and the S&P slipped 0.90 points. The weakness reflected geopolitical concerns amid a continued increase in tensions between the US and North Korea.
Disney declined after the company reported fiscal third quarter earnings that came in above estimates but on weaker than expected revenues. Investors were leery of its plan to launch streaming services rather than rely on Netflix. Netflix retreated. US defense stocks including Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman rallied. Priceline Group tumbled after a disappointing financial forecast.
Second quarter labor productivity climbed 0.9 percent after inching up by a revised 0.1 percent in the first quarter. Unit labor costs were up 0.6 percent following an upwardly revised 5.4 percent reading in the first quarter.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$9.25 to US$1,271.05. Copper futures were down 0.5 percent to US$2.93. WTI spot crude was up 39 US cents to US$49.56. Dated Brent spot crude was up 56 US cents to US$52.70. The US dollar was down against the yen, euro, pound and Swiss franc. The currency declined against the Canadian and the Australian dollars. The Dollar Index was down 0.1 percent. The yield on US Treasury 30 year bond was down 3 basis points to 2.82 percent while the yield on the 10 year note was down 2 basis points to 2.25 percent.
Europe
Stocks across Europe declined Wednesday as investors fled to safe havens given the geopolitical tensions between the US and North Korea. And in a western suburb of Paris, a car hit a group of soldiers in what was called a deliberate act. The FTSE was down 0.6 percent, the CAC lost 1.4 percent, the DAX declined 1.1 percent and the SMI dropped 1.5 percent.
Brenntag sank after its second-quarter results fell short of market expectations. E.ON rose after posting forecast-beating results for the first half and reaffirming its full-year guidance. Scout24 climbed after the online classifieds company forecast stronger growth in revenues in the second half of 2017. Engie declined on reports that it is in talks to purchase a wind power project in Brazil. G4S dropped on concerns over slowing growth in its emerging markets division. Gold miners Randgold Resources and Fresnillo gained as investors rushed to the safety of gold.
Ahold Delhaize declined in Amsterdam after the company reported a 68 percent jump in second-quarter net profit and said it expects underlying operating margin for the full year 2017 to be broadly in line with the first half. ABN AMRO retreated after the bank reported a larger than expected 45 percent rise in second-quarter underlying net profit. Novo Nordisk surged in Copenhagen after the company posted stronger-than-expected first half profits and lifted its growth targets for the year. In Switzerland, financials were under pressure. Credit Suisse, Julius Baer and UBS declined along with Swiss Life and Bâloise. Swiss Re and Zurich Insurance also were lower.
Asia Pacific
Stocks retreated on rising geopolitical tensions from the war of words between the US and North Korea. Oil prices extended their slide and China’s latest inflation data offered few surprises, helping spur demand for safe-haven assets such as gold and the Japanese yen.
The Shanghai Composite declined 0.2 percent while Hong Kong’s Hang Seng was 0.4 percent lower. July consumer prices were up 1.4 percent from a year ago while producer prices were up 5.5 percent for the third month on the year.
The Nikkei and Topix tumbled 1.3 percent and 1.1 percent respectively — the yen hit an eight week high against the US dollar and saw broad gains against its other peers amid the latest bout of geopolitical tensions stemming from the Korean Peninsula. Exporters Panasonic, Sony, Honda Motor, Mazda Motor, Toyota Motor and TDK were lower along with banks Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group. Olympus dropped on weak quarterly results. Inpex and Japan Petroleum were down on the day. Toshiba rallied on a Nikkei report that its auditor plans to grant a qualified approval of the company’s earnings report for the year ended in March. Defence equipment makers attracted broad-based buying.
Both the S&P/ASX and All Ordinaries added 0.4 percent led by financials after Commonwealth posted a 4.6 percent lift in full-year cash profit, beating estimates. Investors shrugged off weak consumer sentiment and home lending data. Miners also advanced despite declining iron ore prices. BHP Billiton, Rio Tinto and Fortescue Metals Group were higher. Gold miners Northern Star, Regis Resources and Evolution Mining rallied as gold benefited from rising tensions between the United States and North Korea.
The Kospi dropped 1.1 percent to hit a seven week low. South Korean won fell nearly 1 percent to its lowest level since July 13 as tensions between the US and North Korea escalated. The Sensex was down 0.7 percent.
Looking forward
Japan posts June machine orders and July producer price index. The Reserve Bank of New Zealand announces its monetary policy decision. France and the UK report June industrial production. Italy and the UK release June merchandise trade data. In the US, July producer price index and weekly jobless claims, money supply and Fed balance sheet will be released.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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