Stocks, dollar extend slide as US-North Korea tensions intensify

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

He did not elaborate on Russia's joint plan with China, though the pair's position on North Korea has long consisted of formally voicing opposition to North Korea's nuclear ambitions but also to USA military support for its allies in the region.

U.S. stocks have risen week after week this year - with the S&P up more than 9 percent - in extremely low volatility, as strong corporate earnings and an improving global economy offset disappointment that U.S. President Donald Trump's promises to lower corporate taxes and implement a massive infrastructure spending have so far failed to see the light of day.

The Australian dollar, which rose to a 19-month high near 90.00 yen late in July, was down 0.7 percent at 86.67 yen after slipping to a one-month low of 86.23 yen. The remarks, following North Korea's earlier revelation of a plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, gave investors a reason to pocket profit in the sectors such as technology that have been the biggest gainers in recent months, analysts said.

Many markets have recently climbed to record or multi-year highs, leaving them vulnerable to a sell-off. The Standard & Poor's 500 index dropped 1.4 percent to 2,438.21. This morning gold had reached $1,286.33 while gold for delivery in December rose 0.8% to $1,290.10.

"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.

The Taiwan dollar on Thursday fell 0.3 percent, putting it on track for its worst day in more than three weeks. It is poised to end the week down 1.9 percent.

Japan is the world's biggest creditor nation and there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty.

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The dollar weakened after news that 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.

South Korea's Kospi sank 1.7 percent to 2,319.83 and Hong Kong's Hang Seng shed 1.8 percent to 26,946.81.

The dollar index, which tracks the greenback against a basket of six major rivals, was almost flat on the day at 93.646, remaining above last week's 15-month low of 92.548. "Risk aversion is still very much a concern for markets". It is set for a weekly gain of 2.4 percent. The Russell 2000 index gave up 1.7 percent to 1,372.54.

Spot gold was almost flat at $1,285.76 per ounce at 0447 GMT and was set for a weekly gain of over 2 percent.

OIL: Benchmark U.S. crude lost 36 cents to $48.23 per barrel on the on the New York Mercantile Exchange.

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

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