Russian Federation touts "plan" with China to ease US-N. Korea standoff

Russian Federation touts

Russian Federation touts "plan" with China to ease US-N. Korea standoff

The euro was down 0.3 percent at just over $1.17 and nearing a two-week low, while the New Zealand dollar tumbled a full 1 percent as its central bank head bluntly said he wanted it lower.

In Asia, several indexes closed lower overnight.

The three main indexes were all down Thursday with the Dow Jones industrial average off 0.93% at 21844.01 points, the Standard and Poor's 500 fell 1.45% to 2438.21 points and the Nasdaq composite lost 135 points, or 2.13%, to close at 6216.87 points.

US stocks closed lower on Tuesday after Trump's vow to respond aggressively to any North Korean threats triggered a late afternoon selling spree.

The dollar was up 0.05 percent to 109.25 yen JPY=, after earlier falling to a sixteen-week low following data showing US consumer prices rose less than expected in July.

Nervous investors drove shares lower earlier in the week, after President Trump declared Tuesday that the US would react with "fire and fury" to further nuclear provocations from North Korea. Published reports says European stocks were heading for their worst weekly loss in nine months as the war of words continue.

S&P 500 e-mini futures were down 0.3 percent, pointing to weakness on Wall Street later in the day. "The market is interpreting it as lowering the odds of the Fed raising rates in December", said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta.

Many markets have recently climbed to record or multi-year highs, leaving them vulnerable to a sell-off.

Russian Foreign Minister Sergei Lavrov said on Friday the risks of a military conflict over North Korea's nuclear program are very high, and Moscow is deeply anxious by the mutual threats being traded by Washington and Pyongyang.

Mississauga Church Pastor Released from North Korea
The church has taken on numerous humanitarian projects in North Korea, one of which prompted Lim's last trip there in January 2015.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption investors there will repatriate funds should a crisis eventuate.

In response to Trump's threat, a report on state-run media in North Korea said it would "turn the USA mainland into the theater of a nuclear war" if it looked like America was going to attack.

The Korean won also continued to skid, down 0.45 per cent to 1,147.2, falling below its 200-day moving average for the first time in a month.

The dollar was further weighed down on Friday by the soft US inflation data.

The data comes amid tepid inflation that has remained below the Fed's 2% target, despite low unemployment. The 10-year German bund yield traded at 0.43 percent while the 10-year US yield declined to 2.243 percent.

The 30-year bond US30YT=RR last rose 28/32 in price to yield 2.7759 percent, from 2.818 percent late on Wednesday.

Crude oil prices extended their slide as exports from key OPEC producers rose, despite news of lower crude shipments from Saudi Arabia. This week has seen its biggest rise since June 2016.

Spot gold prices were little changed at $1,286.05 an ounce, after touching a two-month high earlier.

The cornerstone of his plan, however, is a call for the USA military to call off long-scheduled joint exercises with South Korea, like the one set to begin in just a couple weeks.

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