LONDON, Aug 10 (Reuters) - World stocks fell for a third day on Thursday and investors moved back into the Swiss franc, yen and gold as North Korea ratcheted up tensions with the United States with a threat to land a missile just short of the US territory of Guam. "So we're not going to get to a year-over-year number of 2-percent until some of these very low readings drop out of the statistics 6 to 10 months from now".
In Singapore, the stock market is closed for a public holiday to celebrate the country's National Day. "The North Korea situation appears to be the culprit".
Friday caps a week dogged by escalating tension between the USA and North Korea which culminated with President Donald Trump stating that his earlier threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough". The figure showed a decline of 1.1% versus expectations for a 0.5% drop and reversing from a 1.9% gain in May.
US stock futures were marginally softer on Friday. While the German DAX Index closed just below the unchanged line, the UK's FTSE 100 Index and the French CAC 40 Index both tumbled by 1.1%. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%.
A batch of disappointing earnings results from big retail chains and simmering tensions between the US and North Korea weighed on the market.
The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors will repatriate funds should a crisis materialize.
THE QUOTE: "Inflation - or lack of -- has been an ongoing problem for the central bank and some policy makers have voiced concerns about this in recent months as they consider whether to raise interest rates again this year", said Craig Erlam, senior market analyst at OANDA.
Rochester Hills woman killed by hippopotamus on African safari
The circumstances surrounding her death are unclear, but her obituary states she 'died quickly in the arms of her son Robert '. A post on August 1 mentioned seeing "many handsome animals today", including four to five hippos and bull elephants.
Low U.S. Treasury yields are also weighing on the dollar.
Later on Friday, investors will look to U.S. July consumer price data for hints on the Federal Reserve's policy outlook and near-term moves in the dollar.
On the corporate front, German energy giant Innogy was down 1.58% after it said its customer numbers were growing on Friday, although trading conditions reportedly remained tough. Australia's S&P/ASX 200 edged down almost 0.1 percent to 5,760.90, while South Korea's Kospi fell 0.5 percent to 2,357.84. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189%.
METALS: Gold added $10.80, or 0.8 per cent, to settle at $1,290.10 an ounce.
Politics lifted US defence stocks. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman all rose and the Dow Jones US defence index was up 1.6 per cent after hitting a record high. It was on course for a weekly rise of about 5%, the biggest such gain since July 2016.
United States crude rose 0.41 per cent to US$48.79 per barrel and Brent was last at US$52.01, up 0.21 per cent.