USA stocks fall on worries about North Korea, Irma

Asian shares were mostly lower Monday on investor jitters shaken up by a North Korean nuclear test over the weekend that raised fears about risks to regional stability. Lee Jin-man  AP

USA stocks fall on worries about North Korea, Irma

USA stock futures declined on Labor Day, with risk assets rattled after North Korea tested its biggest nuclear bomb yet. Energy companies are bucking the slide as the price of crude oil heads higher.

Wall Street could reverse the current momentum, however, with the Dow Jones Industrial Average priced to gain around 30 points at the opening bell, according to US equity futures, after yesterday's 1% sell-off took more than 234 points from the benchmark by the end of the session.

USA stock index futures were modestly lower on Monday, paring losses from Sunday after North Korea said it conducted a hydrogen bomb test.

The yield on the 10-year Treasury note fell to 2.07 percent. The dollar index, a measure of the greenback's strength against a basket of six global currencies, was marked 0.11% lower at 92.15 by 05:30 Eastern Time.

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S&P 500 e-minis were down 6.25 points, or 0.25 percent, with 225,794 contracts changing hands.

The test, which North Korea says was of a hydrogen bomb, came less than a week after it fired a rocket over Japan, while Seoul said there were signs the reclusive state was preparing to launch another. "Also you have the hurricane last week and the upcoming hurricane, so there's a lot on the plate for the market to digest".

The financials took the most points of the index with Standard Chartered (LON:STAN) shares falling 3.00% to claim second spot of the biggest losers in early trade. The Nasdaq composite lost 59.76 points, or 0.9 percent, to 6,375.57. Banks and technology companies were down more than the rest of the market. United Technologies shares slumped 5.7 per cent and were the Dow's biggest decliners, while shares of fellow Dow component, plane maker Boeing fell 1.4 per cent. Rockwell Collins shares rose 0.3 per cent.

In London, shares of insurer Prudential dropped 1.3%. All told, the financial sector fell 2.2 percent Tuesday, the biggest decliner in the S&P 500. Nvidia Corp. gave up $4.55, or 2.7 percent, to $165.91. Across the Korean Strait, the Kospi slipped 0.28%.

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