Stocks subdued, gold rises as investors eye global risks

HONG KONG / AP

Stock markets were subdued and the price of oil and gold rose Wednesday as geopolitical risks kept investors on edge ahead of a long weekend. In Europe, France’s CAC 40 gained 0.2 percent to 5,113 and Germany’s DAX added 0.1 percent to 12,150. Britain’s FTSE 100 fell 0.1 percent to 7,357. US indexes were poised to open slightly lower, with Dow and S&P 500 futures down 0.1 percent.
Investors are cautious as world events this week complicate the investment outlook. Tensions are rising over North Korea, which threatened the US against making any military moves after Washington ordered an aircraft carrier to head toward the divided Korean Peninsula. US Secretary of State Rex Tillerson is in Moscow with the aim of getting Russia to ditch its ally Syria following last week’s chemical attack. France’s election later in the month is also giving investors a reason to hunker down and avoid taking any big risks.
Jeffrey Halley, senior market analyst at OANDA, noted that investors are likely to remain cautious as a long weekend approaches. “The safety first theme is likely to continue,” he said. Japan’s benchmark Nikkei 225 stock index tumbled 1 percent to 18,552.61 after the dollar fell under 110 yen for the first time in five months, pressuring the country’s exporters. Hong Kong’s Hang Seng reversed its losses in the final hour of trading, rising 0.9 percent to 24,313.50, while the Shanghai Composite in mainland China lost 0.5 percent to 3,273.83. Australia’s S&P/ASX 200 rose 0.1 percent to 5,934.00 and South Korea’s Kospi climbed 0.2 percent to 2,128.90.