AFP, New York :
The world’s stock markets slid again Thursday with investors seeking safe havens as President Donald Trump doubled down on his warnings to North Korea over its nuclear program.
Trump, whose threat this week to bring “fire and fury” was dismissed by North Korea, said Thursday his statement might not have been “tough enough.”
European equities indexes were a sea of red at the close, while Wall Street indices suffered their biggest losses in near three months, deepening their fall after Trump’s mid-afternoon remarks further stoked fears of a miscalculation that could lead to catastrophic consequences on the Korean peninsula and beyond.
“Risk aversion is once again the name of the game… as geopolitical tensions mount and investors head for cover in the traditional safe havens,” said Oanda analyst Craig Erlam.
But for now it seems that “traders still believe the prospect of military action is very small but precautions are still being taken nonetheless, as this still has the potential to escalate very quickly and unexpectedly,” he said.
London’s benchmark FTSE 100 index was down 1.4 percent at the closing bell, also driven lower by losses in the commodity sector.
In the eurozone, the Paris CAC 40 lost 0.6 percent and Frankfurt’s DAX 30 shed some 1.2 percent.
All three US indices fell sharply, with the broad-based S&P 500 tumbling 1.5 percent.
But safe havens benefited from the move away from stocks with gold rising by just under one percent after surging 1.3 percent Wednesday.
The European and American dips followed similar trading in Asia, where equities also were back in the red, snuffing out a nascent recovery.
Markets had taken heart earlier in the day after US Secretary of State Rex Tillerson sought to play down the escalating war of words between Washington and Pyongyang.
But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar.
The world’s stock markets slid again Thursday with investors seeking safe havens as President Donald Trump doubled down on his warnings to North Korea over its nuclear program.
Trump, whose threat this week to bring “fire and fury” was dismissed by North Korea, said Thursday his statement might not have been “tough enough.”
European equities indexes were a sea of red at the close, while Wall Street indices suffered their biggest losses in near three months, deepening their fall after Trump’s mid-afternoon remarks further stoked fears of a miscalculation that could lead to catastrophic consequences on the Korean peninsula and beyond.
“Risk aversion is once again the name of the game… as geopolitical tensions mount and investors head for cover in the traditional safe havens,” said Oanda analyst Craig Erlam.
But for now it seems that “traders still believe the prospect of military action is very small but precautions are still being taken nonetheless, as this still has the potential to escalate very quickly and unexpectedly,” he said.
London’s benchmark FTSE 100 index was down 1.4 percent at the closing bell, also driven lower by losses in the commodity sector.
In the eurozone, the Paris CAC 40 lost 0.6 percent and Frankfurt’s DAX 30 shed some 1.2 percent.
All three US indices fell sharply, with the broad-based S&P 500 tumbling 1.5 percent.
But safe havens benefited from the move away from stocks with gold rising by just under one percent after surging 1.3 percent Wednesday.
The European and American dips followed similar trading in Asia, where equities also were back in the red, snuffing out a nascent recovery.
Markets had taken heart earlier in the day after US Secretary of State Rex Tillerson sought to play down the escalating war of words between Washington and Pyongyang.
But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar.
