Asia
After a few weeks of relative calm in Asian markets, news that North Korea had fired a missile over Japan revived fears of nuclear conflict. Japan’s Nikkei fell sharply in morning trading, but recovered some ground to close around 0.5% lower at 19,362.55 points. Markets in mainland China, South Korea, Hong Kong, India and Australia were all down on the day. Japan’s prime minister Shinzo Abe warned of the “unprecedented, serious and grave threat seriously damages peace and security in the region” from North Korea.
Europe
Stock markets in Europe took their cue from Asia-Pacific’s uneasiness over the latest escalation in regional tension – with the FTSE 100 index falling nearly 1.5% or 107 points to 7294 points after the stock resumed trading after the long weekend. This brings the blue-chip index down to levels last seen in May. Nevertheless, the index’s biggest risers on Tuesday morning were gold-miner Randgold Resources (RRS), up 4%, and silver miner Fresnillo (FRES), which rose by over 3% in morning trading.
Germany’s Dax was off nearly 2% at 11,904 points, revisiting March levels. France’s Cac was 80 points lower, pushing the index below 5,000 points – as the country’s GDP for the second quarter came in 0.5% higher quarter on quarter and 1.7% year on year. The year on year increase was below forecasts and the outturn in the previous quarter.
North America
US stock market futures also reflect the retreat from risk seen throughout the world so far. The Dow Jones Industrial Average is predicted to fall 100 points at the open, with the S&P 500 expected to shed 20 points. Gold prices spiked above $1,300, a near-year high for the safe haven asset. Looking ahead, US consumer confidence is due for August as well as Case-Shiller house price data for June. In US earnings, electronics-focused retailer Best Buy (BBY) is expected to post revenues of $8.4bn for the second quarter. In Canada, the bank reporting season continues with earnings from Bank of Nova Scotia (BNS) and Bank of Montreal (BMO).