North Korea tensions drag down stocks but boost gold

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The Pacific island of Guam remained outwardly calm today in the face of a threatened North Korean attack, and a senior official in the United States territory urged people to "relax and enjoy paradise".

Globally, France's CAC 40 share index fell 1.5 percent by the afternoon; Germany's DAX fell 1.3 percent. The FTSE 100 ended 44.67 points lower at 7498.06.

US crude rose 1.08 percent to $49.70 per barrel and Brent was last at $52.78, up 1.23 percent on the day. On Wall Street, the future for the Standard & Poor's 500 index fell 0.4 percent and that for the Dow Jones industrial average lost 0.1 percent.

Sterling was last trading at $1.3006, up 0.02 percent on the day. The Russell 2000 index of smaller-company stocks gave up 13 points, or 0.9 percent, to 1,396. Sydney's S&P-ASX 200 gained 0.5 percent to 5,773.70 while New Zealand also rose. It previously spiked to a record high of KRW6,180 on April 11, 2017, when Trump appeared to be gearing up for military action against the North.

Onodera told a lower house of parliament committee that Japan would be allowed to hit a missile headed towards the U.S. Pacific territory if it was judged to be an existential threat to Japan, Kyodo said. The comments follow reports that the North has developed technology to strike the United States with a nuclear missile. The hope, and perhaps the expectation, is that this latest round of rhetoric will also turn out to be just talk, said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management.

"In our estimation North Korea will be able to complete its intercontinental nuclear missile tests by 2018". "Geopolitical risks don't really influence Korean markets", he said.

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"The by-product of quantitative easing, combined with ultra-low interest rate policies, has been the dampening down of volatility", Kelso said, adding that an increase in volatility spikes was likely in the future.

The VSTOXX.V2TX, Europe's main gauge of equity market investor anxiety, stirred to reach its highest level in two weeks, though still remained at subdued levels, while its US counterpart - the Vix.VIX - touched a one-month high.

Catherine Ray, a spokeswoman for the European Commission, said the situation in North Korea, which is "of great concern" to the European Union, needed to be solved through "peaceful means". South Korea's won currency dropped 0.9% against the dollar.

BAD TRIP: Priceline Group slid 8.1 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting.

Both brothers plan to be off-island in the coming weeks.

"Although risk aversion was felt in Europe, the toning down of language saw a recovery in the US (session)", National Australia Bank economist Tapas Strickland said in a Thursday note.

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