Equities down, gold up on N. Korea, Harvey fears

Asian and European stocks slumped with havens, including gold, on the rise after N. Korea launched a ballistic missile over Japan. Gasoline edged down even as energy companies braced for another hit from Tropical Storm Harvey.

From London to Sydney equities retreated and volatility escalated amid classic risk-off moves, with U.S. stock futures also tumbling, according to a Bloomberg report.

Gold surged to the highest this year, while the Swiss Franc and the Yen were the best-performing major currencies. Most European bonds followed Treasuries higher, while the euro climbed above US$1.20 for the first time since 2015, providing yet another drag on the region’s stocks. Gasoline reversed an increase after five days rising, even as Harvey picked up strength again after inundating refineries along the Texas coast.

In the meantime, and while all three major indices were little changed Monday, energy markets, however, moved as Harvey continued to ravage Texas.

Energy markets moved as Harvey continued to ravage Texas. US gasoline futures jumped by as much as 6.8 percent early Monday. WTI crude, the US-benchmark, tumbled by as much as 3% in the afternoon, according to international reports.

Ten oil refineries in Texas have been shut down because of Harvey, according to a report by S&P Global Platts released earlier this week.

Together these plants have the capacity to refine about 2.2 million barrels a day. The storm has, so far, shut down one-quarter of oil production from the Gulf of Mexico.

Source: WAM