Global Stocks Punished By Geopolitics, US Inflation In Focus

Daily December Comex Gold

Daily December Comex Gold

Gold futures continued to rise Friday morning, ahead of inflation data and as tensions between North Korea and the US escalated. Reuters data show a 28-percent chance for a hike after the Fed's December meeting.

The S&P 500 dropped the most since May and MSCI's gauge of stocks across the globe .MIWD00000PUS lost 1.1 percent in its third straight day of declines, as it pulled further back from all-time highs.

A Reuters Datastream index of more than 7,000 stocks across the globe saw its market capitalization drop from a record high $61.36 trillion on Monday to $60.43 trillion at the close on Thursday.

Baker Avenue's Lip said the US market was higher due to "bargain hunters", but "there's more room for the market to come down".

"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.

Iran Majlis passes motion in response to USA sanctions
The bill must now pass a second vote before being submitted to the Guardians Council for final approval and passage into law. Iran's Deputy Foreign Minister Abbas Araghchi said the bill passed on Sunday had the support of the government.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors there will repatriate funds should a crisis materialise. These mark a bucking against the 1.3% fall in Australia's benchmark index.

South Korea's KOSPI fell 1.4 percent, taking its losses this week to almost 3 percent.

Russian Federation responded directly to the mounting war of words between the USA and North Korea Friday, with Foreign Minister Sergei Lavrov saying that the wiser and stronger will make the first move to deescalate tensions.

Meanwhile, gold demand in India remained sluggish this week as local prices jumped to their highest level in almost three months and a rally in global prices dampened fresh buying elsewhere in Asia.

"We're not very oversold yet so the market still has more downside left to it", said Robert Pavlik, chief market strategist at Boston Private Wealth in NY. "I think before the end of the year the market goes to new highs and (Treasury) yields go higher".

Army Men Killed, 3 Injured In Jammu And Kashmir's Shopian Encounter
SSP Shopian told news agency GNS that the firing has stopped and searches have been launched to trace the bodies of militants. The Army quickly launched a search operation in the area but no arrests were made, the police sources said.

Damage for the week: The days of verbal sparring between Washington and Pyongyang looks set to bruise weekly performances for the major USA indexes.

The spot price of gold was 0.6 per cent to $US1285.53 an ounce overnight.

The trade deficit narrowed in June from the previous month and imports fell 2.5 percent from a year earlier.

European bourses also looked set to open lower across the board, with Eurostoxx 50 futures already down 0.7 percent in early trade.

Crude futures meanwhile extended losses on fears of slowing demand and lingering concerns over global oversupply.

State Department expected to address latest North Korea threats in news briefing
Trump has criticized North Atlantic Treaty Organisation while Tillerson and others reaffirmed USA support for the alliance. Tillerson spoke to reporters aboard his plane as he returned from Malaysia to Washington , stopping along the way in Guam.

USA crude (CLc1) was unchanged at $48.59 per barrel and Brent (LCOc1) was last at $51.84, down 1.63 percent on the day.

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