Sunday 13, August 2017 by William Mullally

North Korea worries hit markets

Mihir Kapadia, CEO and Founder, Sun Global Investments

North Korea worries finally hit the markets yesterday after its leader Kim Jong Un hinted at a plan for a missile strike on the US military base on Guam in an unusually strong threat to attack the US This elicited a hawkish response from President Trump who warned of a response of “fire and fury like the world has never seen.”

These events hit trading in a recovering stock market where the S&P had hit a fresh all-time high intraday. The Dow Jones Industrial Average edged lower Tuesday, bringing a streak of nine successive positive closes and a series of record highs to a close.

Indices traded in a narrow range throughout the day, with the selling accelerating toward the end of trading. The Dow fell 0.1 per cent, while the S&P 500 and Nasdaq edged down 0.2 per cent.