USA POLITICS: $1T Wiped Off Global Markets Because of Trump Outbursts With North Korea

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By Politicoscope August 12, 2017 13:49

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US Secretary of State Rex Tillerson on Wednesday warded off – at least for now – the prospect of massive losses on the Wall Street market after stressing that there was “no imminent threat of war” and that Americans could “sleep well at night.”

However, Trump’s unpredictable behavior and comment saying, “Military solutions are now fully in place, locked and loaded” against North Korea,” are unlikely to leave nervous traders pacified and the market doldrums may persist.

Continue below with the full current political topic.

USA POLITICS: $1T Wiped Off Global Markets Because of Trump Outbursts With North Korea

US President Donald Trump’s brinkmanship in the escalating tensions with North Korea has taken a heavy toll on global markets, wiping $1 trillion off the value of shares worldwide. US stocks on Friday ended with their worst weekly loss since March after Trump ratcheted up his fiery rhetoric, saying in a tweet: “Military solutions are now fully in place, locked and loaded” against North Korea.

A day earlier, the Standard & Poor’s 500 index posted its biggest single-day drop in nearly three months following Trump’s warning to unleash “fire and fury” if Pyongyang continued its nuclear weapons expansion.

North Korea responded to the threat with a promise to land missiles near the US Pacific territory of Guam.

Nervous traders have scrambled to take refuge in traditional safe havens such as gold, silver, bonds, Japanese yen and Swiss franc, dampening interest in risk assets such as equities and industrial commodities.

Gold has risen to its highest level in almost two months, while the Swiss franc has powered against the US dollar and seen its biggest one-day gain against the euro in more than two and a half years.

The yen has also registered its biggest weekly gain since May against the dollar amid speculation that investors of Japan, as the biggest creditor nation, would repatriate their funds should a war break out.

US Secretary of State Rex Tillerson on Wednesday warded off – at least for now – the prospect of massive losses on the Wall Street market after stressing that there was “no imminent threat of war” and that Americans could “sleep well at night.”

However, Trump’s unpredictable behavior is unlikely to leave nervous traders pacified and the market doldrums may persist.

On Friday, an MSCI index of stocks across the globe posted its largest weekly drop since the week before Trump won the US presidential election in November.

Trump’s outbursts have chiefly affected Asian markets, with the tense mood dragging shares in the continent lower.

Several indexes closed lower overnight. According to the Associated Press, South Korea’s Kospi lost 1.7 percent, while Hong Kong’s Hang Seng slid 2 percent. Australia’s S&P/ASX 200 dropped 1.2 percent, while Japan was closed on a public holiday.

– Press TV


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Politicoscope
By Politicoscope August 12, 2017 13:49

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Since You’re Here, We Would Like to ask You for Help

There are more readers worldwide reading the Politicoscope daily news content than ever before. Unlike many other news media organisations that charge their readers subscription fees for the same daily news content and features we offer you for free, we do not charge all our readers to pay any fee. We depend on online advertising to generate the revenues to fund all these great news content and exclusive features provided to you for free. Currently, advertising revenues are quickly falling which is affecting our ability to offer you free online news content.
If everyone who reads our news content, likes it and helps to support it, we can have future guarantee to offer you with the best daily news content and other amazing features, all for free.
"I visit Politicoscope everyday to read my daily news in world politics. I'm glad it's all for free. On my part, I'm happy to donate monthly so as to continue enjoying these free content because it's actually a small amount from me compared to paid subscriptions by other news organisations. I want to help Politicoscope grow more so that I and other readers can continue to have access to free and exclusive daily online news." - Denise H., from LA, USA.
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