US stocks slip, treasuries rise as Trump ratch up rhetoric against N Korea

Markets remained on cautious footing as US stocks slumped a second day and haven assets pushed higher after tensions mounted between the US and North Korea. Crude oil erased gains after inventories data. 

The S&P 500 Index retreated, European equities slipped and emerging-market shares fell the most since May after President Donald Trump ratcheted up his rhetoric against North Korea.

Bullion headed for its largest increase in two months while the yen and Swiss franc posted the biggest gains among G-10 currencies. 

The 10-year Treasury yield fell to 2.22 per cent. Volatility gauges from the US to Japan rose after Trump said in response to a Washington Post report on North Korea’s nuclear capabilities that further threats from the country would be met with “fire and fury.” 

North Korea said it’s examining an operational plan for firing a ballistic missile toward Guam.