European shares fall on Paris incident, North Korea worries

Posted August 10, 2017

President Trump's incendiary comments on North Korea on Tuesday afternoon turned a generally positive day on Wall Street into a big fat loser.

In a statement delivered at his Bedminster, New Jersey golf club, Trump said, "North Korea best not make any more threats to the U.S. They will be met with fire and fury like the world has never seen".

After a dip of as much as 0.52 percent earlier in the day, investors appeared to take some comfort in Tillerson's comments, said Richard Steinberg, managing director at HighTower Advisors in NY.

But even faced with the possibility of military action by Kim Jong-un's police state, Wall Street still suggests a buy-and-hold strategy. Brent crude, used to price global oils, gained 40 cents to $52.54 in London. Overall, the Dow was off 66 points, or 0.3%, at 22,022, while the S&P 500 index was trading 0.4% lower at 2,465, and the Nasdaq Composite Index was 0.7% lower at 6,327. The Nasdaq composite lost 0.2 percent, to 6,370.46. Net income fell to US$3 million from US$36 million in the year-ago quarter.

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G4S shares fell 4.7 percent despite the security group reporting first-half profit up 7.6 percent and saying its turnaround was on track.

The Canadian dollar was trading at an average price of 78.71 cents USA, down 0.20 of a USA cent. Brent crude, the worldwide standard, lost 28 cents to $52.09 a barrel in London.

Stocks slid globally earlier in the day as well. The euro edged down to $1.1726 from $1.1751.

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European shares were also lower following reports that a vehicle had rammed a group of soldiers in Paris, injuring six before speeding off in what officials identified as a suspected terrorist attack.

Martin van Vliet, a senior rates strategist at ING, said the market move in German bonds was exacerbated by speculative bets on futures derivative contracts, rather than actual trading in the underlying assets.

European equity markets also opened sharply lower and measures of volatility spiked. Sydney's S&P-ASX 200 gained 0.5 percent to 5,773.70 while Manila, Malaysia and Jakarta also rose. South Korea's Kospi fell 0.2 percent.

Hong Kong's Hang Seng Index was off 0.09%.

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