Shares mark worst week this year as geopolitics bites

North Korea Tensions Hit Global Stock Markets

North Korea Tensions Hit Global Stock Markets

Also underpinning a move higher in the precious metal, was data showing a continued slowdown in the pace of inflation as consumer prices rose less than expected in July.

The Standard & Poor's 500 index fell 7 points, or 0.3 percent, to 2,467.

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the US presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday.

Geopolitical risks can boost demand for assets considered safe-haven investments, such as gold.

The Nasdaq Composite Index plunged 2.1% to 6216.87 and the Standard & Poor's 500 Index dropped 1.45% to 2438.21.

Investors opted for the perceived safety of US Treasuries, which pushed the yield on the 10-year note three basis points lower to 2.21 percent.

US stock futures were pointing to a weaker open on Friday. The pan-European benchmark on Wednesday fell 0.7% in a sell-off prompted by tensions between the United States and North Korea escalated.

The dollar held steady at 110.02 yen JPY= , having pulled up from Wednesday's low of 109.56 yen, its lowest level since June 15. It was the benchmark's worst percentage drop since a 1.8 % decline on that same day in May.

Wall Street stocks posted their biggest declines in almost three months late Thursday as US President Donald Trump doubled down on his warnings to North Korea over its nuclear program.

Ryu Yong-seok, a market analyst at KB Securities Co., said tensions between North Korea and the United States are a negative factor in the local stock markets that dragged down the index.

The strength on Wall Street is partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback seen over the past few sessions. U.S. bond prices also rose while gold closed at its highest for the week up 1.52% to $1281.

Some investors are on edge after U.S. President Donald Trump warned North Korea of "fire and fury". Falls of just 0.3% were recorded by both the Dow Jones industrial average and the more broad-based S&P 500 in early trading.

The pan-European STOXX 600 was down 0.7% at closing, France's CAC 40 fell 1.4% after a auto hit a group of soldiers in Paris in what is thought to have been a deliberate act, and a fall in bond yields saw Germany's DAX down 1.1%.

A Labour Department report showed its producer price index posted a surprise drop in July, down 0.1 percent for the largest slide in nearly a year.

Disney shares were down 4.8 percent as investors were skeptical of its plan to launch streaming services rather than rely on Netflix.

On Thursday, Germany's DAX 30 lost 0.2% to 12,124.23, and France's CAC 40 index fell 0.3% to 5,132.45.

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