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Published: Sat, August 12, 2017
Economy | By Melissa Porter

U.S. stocks close lower after President Trump's remarks to North Korea

U.S. stocks close lower after President Trump's remarks to North Korea

South Korean marines fired a Spike surface-to-surface missile and more than 200 artillery rounds from K9 self-propelled howitzers, staging a "routine" exercise near the tense western border with North Korea. Hong Kong's Hang Seng was off 0.3 percent. "Risk aversion is still very much a concern for markets", said Shaun Osborne, chief currency strategist, at Scotiabank in Toronto. Energy stocks fell along with crude prices as investors kept an eye on the latest company earnings and geopolitical news.

The Swiss franc and Japanese yen had notched up impressive gains against the dollar on Wednesday after U.S. President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States.

The Standard & Poor's 500 index slipped 0.90 points, or 0.04 percent, to 2,474.02.

Technology stocks, the biggest gainers this year, led Thursday's market slide.

Substantial weakness was also visible among internet stocks, as reflected by the 2.8 percent slump by the Dow Jones Internet Index.

Gold prices spiked to one-week highs Wednesday, on the back of a surge in safe haven demand, after North Korea said it is considering an attack on the USA pacific territory of Guam.

Benchmark U.S. 10-year notes were last up rose 11/32 in price to yield 2.2423 percent, from 2.282 percent late on Tuesday. The Nasdaq was off 0.2 percent, to 6,370.46.

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the election.

The broader Topix dropped 0.2 percent to 1,615.56.

Dow Jones Industrial Average (DJIA) futures are trading below fair value, as traders continue to monitor escalating tensions between the US and North Korea.

Spot gold added 1.2 percent to $1,275.60 an ounce. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. The euro rose to $1.1774 from $1.1752. (NASDAQ:NFLX) are trading 3.5% lower in pre-market trading, after Walt Disney Co (NYSE:DIS) announced Tuesday that it would end its partnership with Netflix and remove all Disney and Pixar movies from Netflix's platform by 2019.

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.

The dollar was flat at 110.08 yen on Thursday, up from Wednesday's low of 109.56 yen, which was the dollar's lowest level since June 15.

In commodities trading, USA crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut.

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce.

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