Korean shares end lower on foreign selling amid tensions over N. Korea

Persistent gold buying by local jewellers at domestic spot market stoked uptrend

The U.S. blue-chip index is down 1.1% this week and the S&P 500 is 1.6% lower, facing its worst weekly performance since November.

Excluding food and energy prices, core consumer prices still crept up by 0.1 percent in July, matching the increases seen in the three previous months.

If the North Korean regime "does anything" to the USA or a USA ally "things will happen to them like they never thought possible", he told reporters on Thursday, according to Bloomberg.

Railroad stocks have shown a strong move to the upside on the day, driving the Dow Jones Railroads Index up by 1.3 percent.

Dow e-minis were up 6 points, or 0.03 percent, with 29,187 contracts changing hands at 8:34 a.m. ET (1234 GMT).

U.S. President Donald Trump, in his latest warning to North Korea, said military solutions were "fully in place" and referred to American weapons as being "locked and loaded" should the nuclear-armed nation act "unwisely".

The tensions, since Trump's "fire and fury" comments on Tuesday, have wiped out almost $1 trillion from the global equity markets.

Unease over the North Korean situation pushed the VIX, a measure of how much volatility investors expect in stocks, up 44.4 percent. The stock fell 76 cents to $5.48. Japan is the world's biggest creditor country and there is an assumption investors there will repatriate funds in a crisis.

Shares of Walt Disney were down 4.23 per cent, the biggest drag on Dow, as investors doubted whether the company can succeed with its plan to launch its own streaming services rather than rely on Netflix to reach online viewers.

The Swiss franc reversed a two-week losing streak and gained 1.1 per cent to as firm as 0.9611 per dollar.


Shares Snap fell 1.94, or 14%, to 11.83 after the Snapchat parent reported earnings late Thursday that missed analyst forecasts.

"Heightened geopolitical risks overnight have seen the markets flip from risk-on to risk-off and we have to wait and see how long this move runs before adding some positions", said Viraj Patel, an FX strategist at ING in London.

The Dow slid as declines in Apple and Goldman Sachs, down 2.3% and 1.7% respectively, outweighed gains in McDonald's and Coca-Cola, up 1.4% and 0.5% respectively.

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%.

Yields on core government debt fell.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.

Gold rose 0.6 per cent to $1,268 an ounce.

The market jitters gave investors an opportunity to pocket some of their recent gains after a string of record highs fueled by strong corporate earnings.

Oil prices rose before a report expected to show USA crude stocks fell for a sixth week.

MARKETS OVERSEAS: Major indexes in Europe were headed lower.

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