Wall St higher but on track for deep weekly losses

Wall St higher but on track for deep weekly losses

Wall St higher but on track for deep weekly losses

The three major US stocks indexes were on track to snap a three-day losing streak on Friday, as investors bet that tepid inflation data would stunt USA rate hikes, even as the United States and North Korea stepped up an aggressive war of words. The 10-year German bund yield traded at 0.43 percent while the 10-year USA yield declined to 2.243 percent.

The Dow Jones Industrial Average closed down 204.69 points, or 0.93 percent, at 21,844.01, the S&P 500 lost 35.81 points, or 1.45 percent, to end the session at 2,438.21 and the Nasdaq Composite fell 135.46 points, or 2.13 percent, to 6,216.87.

Japanese markets were closed for a holiday but the yen powered on, hitting an eight-week high of 108.91 yen to the dollar, adding to its biggest weekly gain since May.

"The escalation of the geopolitical situation between the USA and North Korea is beginning to rattle investors' nerves as was witnessed in the VIX index yesterday", said Peter Cardillo, chief market economist at First Standard Financial. Europe stock prices were generally lower.

In his latest warning to North Korea, U.S. President Donald Trump said on Friday military solutions were "fully in place" and referred to American weapons as being "locked and loaded" should the nuclear-armed nation act "unwisely".

U.S. Treasury long-dated yields dropped to six-week lows, pressured by U.S.

Excluding food and energy prices, core consumer prices still crept up by 0.1 percent in July, matching the increases seen in the three previous months.

Weaker-than-expected July consumer price data pointed to benign inflation that could cause the Federal Reserve to hold off from raising rates again this year.

Investors also drew some encouragement from new government data showing USA inflation at the consumer level inched higher last month.

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Tensions between North Korea and the U.S. escalated this week amid increasingly heated rhetoric between Washington and Pyongyang.

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Disappointing US inflation and jobs data have not helped the dollar. Wanda Hotel Development shares rose 19.8% after the unit of China conglomerate Dalian Wanda Group said it would buy assets worth more than 7 billion yuan ($1.05 billion) as part of a restructuring.

The sell-off is likely to extend into the European session, with financial spreadbetter CMC Markets expecting Germany's DAX and France's CAC 40 to open down about 0.7 per cent each and Britain's FTSE 100 to start 0.55 per cent lower.

Crude futures extended losses on fears of slowing demand and lingering concerns over a global oversupply.

USA equities steepened their losses late in the session after President Donald Trump said his earlier warnings to North Korea may not have been tough enough.

As Tracy reported earlier Friday on "CBS This Morning", President Trump has fanned the flames of the rhetorical battle with North Korea even as he appeals to China to solve the crisis diplomatically.

Emerging market stocks .MSCIEF lost 1.27 percent.

In commodities trading, crude oil futures are slipping $0.10 to $48.49 a barrel after tumbling $0.97 to $48.59 a barrel on Thursday.

Meanwhile, the Russell 2000 index of small-cap stocks looked poised for a weekly drop of almost 3%, its biggest one-week decline since February 2016. The stock has more than doubled over the past 12 months, gaining more than 160%.

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