Thursday, Oct 19 2017 | Time 14:43 Hrs(IST)
image
  • Five drug peddlers nabbed, Charas and Ganja seized
  • PM Modi in Gurez to celebrate Diwali with soldiers on LoC
  • Pakistan: Anti-corruption court indicts Nawaz, his daughter and son-in-law
  • Attack on Afghanistan military base kills at least 43 servicemen
  • Defence Minister Celebrates Diwali with Jawans of Andaman Nicobar Command
  • Nepali Prez extends greetings on Tihar, Diwali
  • PM Abbasi leaves for Turkey to attend D-8 Summit
  • Medicine trader shot dead in Bihar
  • Accountability Court reject petitions of Nawaz, Maryam against indictment
  • India can keep an eye on Pakistan: Nikki Haley
  • Mitsui Life to boost Oct-Mar foreign bond holdings by over Y100 bln
  • Taliban kills at least 43 Afghan troops as they storm base-officials
  • Withdraw bus fare hike: Anbazhagan
  • Withdraw bus fare hike: Anbazhagan
  • Kerala Govt to table solar report in Assembly on Nov 9
World Share

US dollar, debt yields fall on N. Korea missile test report

By Herbert Lash

NEW YORK, Oct 7(Reuters) The U.S. dollar tumbled and debt yields pared sharp gains on Friday on a report that North Korea is preparing to test a long-range missile, reversing earlier jumps after U.S. jobs data for September raised the likelihood of an interest rate hike in December.

A Russian lawmaker just returned from a visit to Pyongyang was quoted by Russia's RIA news agency as saying that North Korea believes the missile can reach the U.S. West Coast.

"The market is getting more nervous about the prospect of some kind of a conflict," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.

"If they do something over the weekend, even if it's a mild test, I'm sure we're going to open up a with little bit of risk aversion on Monday."

The jobs data and North Korea report tempered equity markets that had rallied all week and sent MSCI's world stock index, along with the three major U.S. gauges on Wall Street, to four successive record-closing highs.

The Nasdaq edged up at the close, its ninth straight higher close, while the S&P 500 and Dow ended the session slightly lower.

The dollar index fell 0.17 percent.

The euro rebounded 0.2 percent to $1.1733, while the Japanese yen reversed course to strengthen 0.16 percent at 112.63 per dollar.

The dollar and government debt yields had jumped earlier on strong gains in average hourly wages, which suggested the pace of inflation could quicken closer to the Federal Reserve's target of 2 percent.

U.S. employment fell in September for the first time in seven years as Hurricanes Harvey and Irma temporarily displaced workers and delayed hiring, the latest sign the storms undercut economic activity in the third quarter.

Average hourly earnings increased 12 cents, or 0.5 percent, after rising 0.2 percent in August. The gains came as nonfarm payrolls fell by 33,000 jobs last month against expectations of a 90,0000 gain.

The yield on two-year U.S. Treasury notes soared to their highest in nine years, while the dollar hit an almost three-month high against the Japanese yen and almost a two-month high against the euro.

The jump in average hourly earnings surprised investors who were aware the headline employment number would be distorted by the hurricanes, said Win Thin, head of emerging markets currency strategy at Brown Brothers Harriman in New York.

"This is the missing piece in the Fed's puzzle," he said. "The dollar rally is back on track and should continue next week."

Benchmark 10-year notes fell 5/32 in price to yield 2.3697 percent, paring gains that earlier had sent yields above 2.4 percent.

However, the report should be taken with a large grain of salt as the jump in wages is likely to show near equal weakness in October, said Russell Price, senior economist at Ameriprise Financial Services Inc in Troy, Michigan.

The Dow Jones Industrial Average fell 1.72 points, or 0.01 percent, to 22,773.67. The S&P 500 lost 2.74 points, or 0.11 percent, to 2,549.33 and the Nasdaq Composite added 4.82 points, or 0.07 percent, to 6,590.18.

The pan-European FTSEurofirst 300 index lost 0.37 percent to close at 1,530.83, while MSCI's gauge of stocks across the globe shed 0.07 percent.

U.S. December gold futures settled up 0.1 percent at $1,274.90.

Oil prices fell more than 2 percent, ending Brent's longest multi-week rally in 16 months, after profit-taking and the return of oversupply concerns.

Brent settled at $55.62 per barrel, down $1.38 on the day, while U.S. crude fell $1.50 to settle at $49.29.

REUTERS JW0702
Top News
PM greets people on Diwali

PM greets people on Diwali

New Delhi, Oct 19 (UNI) Prime Minister Narendra Modi on Thursday extended his good wishes to the people on the occasion of Diwali.

see more..
   
19 Oct 2017 | 12:50 PM
Accountability Court reject petitions of Nawaz, Maryam against indictment

Accountability Court reject petitions of Nawaz, Maryam against indictment

Islamabad, Oct 19 (UNI) Accountability Court on Thursday rejected two separate applications - one by Maryam Nawaz and Captain (retd) Safdar and the other by ousted prime minister Nawaz Sharif - against their indictment.

see more..
   
19 Oct 2017 | 2:35 PM
India can keep an eye on Pakistan: Nikki Haley

India can keep an eye on Pakistan: Nikki Haley

Washington, Oct 19 (UNI) US Am­bassador to the UN Nikki Haley has said that India can help the United States in keeping an eye on Pakistan, as Washington cannot tolerate any government that shelters terrorists.

see more..
   
19 Oct 2017 | 2:16 PM
Veteran Indian diplomats hail Trump Admin's 'first comprehensive statement' on India Policy

Veteran Indian diplomats hail Trump Admin's 'first comprehensive statement' on India Policy

New Delhi/Washington, Oct 19 (UNI) The major policy announcement by the Trump Administration in which it has described India as US's 'reliable partner' at the world stage in a period of uncertainty, while chiding China's 'provocative action', is being seen by veteran diplomats here as a reflection of increasing convergence of interest between the two countries in the Asia pacific.

see more..
   
19 Oct 2017 | 1:05 PM
US faces 'unimaginable' strike if it continues military drills with SK: North Korea

US faces 'unimaginable' strike if it continues military drills with SK: North Korea

Pyongyang, Oct 19 (UNI) North Korea has upped its war talk once again, warning the United States it faced an "unimaginable" military strike if drills with South Korea were continued, the Mirror (UK) reported on Thursday.

see more..
   
19 Oct 2017 | 1:10 PM
Security Council voices concern over reported violence in Kirkuk

Security Council voices concern over reported violence in Kirkuk

United Nations, Oct 19 (UNI) The Security Council has expressed concern over recent reports of violence near the city of Kirkuk in northern Iraq.

see more..
   
19 Oct 2017 | 1:13 PM
CPN-MC to withdraw support from Govt in Nepal

CPN-MC to withdraw support from Govt in Nepal

Kathmandu, Oct 19 (UNI) Minister without portfolio Mahendra Bahadur Shahi has asserted that CPN-Maoist Centre would withdraw its support to PM Deuba-led government within few days.

see more..
   
19 Oct 2017 | 11:19 AM
Veteran Indian diplomats hail Trump Admin's 'first comprehensive statement' on India Policy

Veteran Indian diplomats hail Trump Admin's 'first comprehensive statement' on India Policy

19 Oct 2017 | 1:05 PM

New Delhi/Washington, Oct 19 (UNI) The major policy announcement by the Trump Administration in which it has described India as US's 'reliable partner' at the world stage in a period of uncertainty, while chiding China's 'provocative action', is being seen by veteran diplomats here as a reflection of increasing convergence of interest between the two countries in the Asia pacific.

image