TSX hits 1-month low on risk aversion, lower oil prices

US and British equivalents were also trading a touch above Wednesday’s six-week lows. Health care companies were among the gainers.

Gold prices continued to climb on Friday, as geopolitical tensions between the US and North Korea kept safe-haven demand elevated while data showing July inflation undershot expectations, lessened the prospect of a rate hike this year.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 143.08 points, or 0.94 percent, at 15,074.25, its lowest close since July 7. Germany’s DAX fell 1.1 percent, while the CAC 40 in France lost 0.6 percent.

Markets had seen a tentative recovery in risk appetite in US and early Asian trading, but as the war of words resumed Asian stocks dropped back and London, Frankfurt and Paris all lost 0.5-1.2 percent.

His comments came in response to North Korea’s threat to fire ballistic missiles toward the US territory of Guam, which is home to USA strategic bombers, a naval station and other strategic assets.

The reclusive state raised the stakes further on Thursday with a detailed plan to send a salvo of missiles towards the U.S. territory of Guam.

“Sound dialogue is not possible with such a guy bereft of reason and only absolute force can work on him”, a report by the North’s state-run KCNA news agency said of Trump. “This is a normal fluctuation, it just seems so odd because we have hardly had any volatility”, said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis. With the upward move, the Nasdaq and the S&P 500 rebounded after ending Thursday’s trading at their lowest closing levels in a month.

Macy’s (M.N) shares closed down 10.2 percent and Kohl’s (KSS.N) fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off. The stock lost $5.23 to $101.75. They were at 2.201 percent on Friday. Financial companies and department store operators were among the big decliners.

Shares of Michael Kors ended up 21.5 per cent, after the luxury goods maker raised its full-year revenue forecast. The company booked a hefty charge and said its CFO is leaving the company. The stock fell $2.25 to $20.79.

Significant strength was also visible among software stocks, as reflected by the 1.2% gain posted by the Dow Jones Software Index.

GOT A PULSE: Health care stocks, which have been in a slump, were headed higher. It is poised to end the week down 1.3 percent. Advanced Micro Devices gave up 50 cents, or 3.9 percent, to $12.33. The FTSE 100 index of leading British shares declined 0.6 percent.

The index was also dragged lower after Beijing ordered probes into three major Chinese social networking platforms over outlawed content. Hong Kong’s Hang Seng Index plunged by 2%, while South Korea’s Kospi Index slumped by 1.7%.

The 30-year Treasury bond rose 27/32 in price to yield 2.8252 percent, from 2.867 percent late on Tuesday.

Spot gold inched down 0.1 percent to $1,284.64 per ounce as of 0616 GMT, but was set for a weekly gain of over 2 percent.

Still, prices for gold remain below $1,300 an ounce “because so far there has been a lot of talk, but little action”, said Cieszynski. Copper fell 2 cents to $2.93 a pound. Brent crude, used to price worldwide oils, gave up 29 cents to $51.85 in London. Oil also regained momentum as data pointed to declining USA inventories.

The dollar was down 0.53 percent against the yen at 109.48 yen, after briefly dropping as low as 109.53. The euro strengthened to $1.1756 from $1.1752.