Global Stocks Mixed on Tech Sell-Off, North Korea Threats -- Update
By Marina Force
Global stock markets were mixed Tuesday, following a selloff in technology shares on Wall Street and fresh threats from North Korea.
The Stoxx Europe 600 was up 0.1% in midmorning trade, after opening in the red, with European energy shares among the biggest winners. Asia stocks closed broadly lower amid a pullback in shares of tech firms.
Futures pointed to a flat opening for both the S&P 500 and the Dow Jones Industrial Average, after Wall Street closed lower on Monday with tech stocks under pressure.
North Korea tensions escalated Monday, after the foreign minister warned that his country would shoot down U.S. warplanes even if they were outside the nation's airspace. In the U.S., the White House dismissed assertions about war and the Pentagon brushed off the military threat.
The war of words between North Korea and the U.S. has pressured major indexes and sent haven assets like gold higher a few times since summer.
"Markets do get jolted by these things," said Sat Duhra, a portfolio manager at Janus Henderson Investors, referring to the escalating military tensions.
Haven assets' reactions to the latest comments from North Korea were muted. Gold prices were 0.2% down and the Japanese yen, which tends to rise when markets stutter, was flat, while the Swiss franc lost 0.3%.
Elsewhere in the currency market, the euro fell 0.2% against the dollar, extending Monday's losses, after Angela Merkel's conservative alliance won the German election, but lost ground to the nationalist Alternative for Germany group.