Wall Street rises on Fed bets but North Korea mutes gains

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       Swiss stocks were among those under pressure in Wednesday’s trade

Shutterstock Swiss stocks were among those under pressure in Wednesday’s trade

A Chinese state-run newspaper said on Friday that China should make clear that it will stay neutral if North Korea launches an attack that threatens the United States, but that if the U.S. attacks first and tries to overthrow North Korea's government, China will prevent it doing so.

The Dow Jones Industrial Average rose 0.07 per cent to 21,858.32, the S&P 500 gained 0.13 per cent to 2441.32 while the Nasdaq Composite added 0.64 per cent to 6256.56.

Technology stocks in particular were higher, as Apple added $1.88, or 1.2 per cent, to $159.36 and Microsoft picked up $1.07, or 1.5 per cent, to $73.57.

The euro edged 0.3 percent lower to 1.1726 against the dollar.

"Too many past administrations have kicked the can down the road and we've finally come to the end of the road where North Korea has nuclear weapons and the means to deliver them", he said.

The dollar weakened against the yen, which is often sought in times of geopolitical tension.

South Korea's KOSPI fell 1.7 percent on Friday to its lowest since May 24, but its losses for the week were a relatively modest 3.2 percent.

Shares of Snap Inc ended down 14 percent after hitting a record low following a miss on revenue and daily active users.

"The risk aversion has stabilised and investors have gotten used to the North Korea situation a little bit - as long as it doesn't escalate further", said Daniel Lenz, a strategist at DZ Bank in Frankfurt. Interestingly, exports to the continent rose by just shy of 3%, but fell on the overall measure, meaning the United Kingdom is becoming more, not less, dependent on the European Union, whatever the result of the referendum past year.

Gold extended gains after data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

Auto parts maker Hyundai Mobis Co. was up 1.78 percent to 257,500 won, and No. 2 chipmaker SK hynix Inc. rose 0.31 percent to 64,400 won. Chinese blue chips are about flat but Hong Kong's Hang Seng index is down 0.3 percent. The Korean won is also suffering - the U.S. dollar is up 0.58% against the currency at the time of writing (7.30 a.m. GMT/1.30 a.m. ET), while the pound is up 0.77% against the won, and the euro is up 0.53% against it.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.19 percent from 2.20 percent late Thursday.

Dollar/yen was last trading at 109.2, gold was at $1,285.75 an ounce, dollar/franc was at 0.9625. They were at 2.201 percent on Friday.

The market's main backstop in times of strain, gold, hit a two-month high of $1,282 an ounce amid the nervousness. "The U.S. has no interest in regime change or accelerated reunification of Korea". It soared more than 2 percent in the previous two sessions, and is set for a weekly gain of 2,25 percent.

U.S. crude was down 0,9 percent at $48,16 a barrel, on track for a weekly loss of 2,9 percent.

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