Swiss franc eases slightly after spiking on North Korea tensions

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The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment. The Japanese markets were closed for a holiday.

Geopolitical concerns continued to weigh on Wall Street amid an ongoing escalation in tensions between the USA and North Korea.

"Of course it's all come at a time when share markets are due for a correction so North Korea has provided a flawless trigger". Meanwhile, euro/dollar was 0.2% up, just shy of the 1.18 handle, pound/dollar was flat, having earlier hit a three-week low of 1.2939 and dollar/yen was 0.1% down above the 109 level - the pair fell to 108.72 after the data on US CPI, its lowest since April 20.

The Dow Jones Industrial Average rose 14.31 points, or 0.07 per cent, to end at 21,858.32, the S&P 500 gained 3.11 points, or 0.13 per cent, to 2,441.32 and the Nasdaq Composite added 39.68 points, or 0.64 per cent, to 6,256.56. According to the Associated Press, South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent.

The ongoing political crisis that has seen North Korea state it was seeking to strike the US Pacific island territory of Guam within days, prompted gold speculator Dennis Gartman, editor and publisher of The Gartman Letter to say he believed gold was on the cusp on a significant break out.

"As a portfolio manager, you say, 'Do I think we'll get a war out of this?'", said Torsten Slok, chief worldwide economist at Deutsche Bank.

"If you strip away what's going on in North Korea, and if you strip away what's going on in Washington, which are things that are tougher to predict, the economy, the global recovery, earnings, it all paints a very positive picture for the rest of the year", Kravetz said.

Korea tensions cast long shadow over markets
Anglo American (LON:AAL) is now leading other blue-chip miners lower, having shed 4.22 percent to 1,223.50p. The rouble was little changed at 60.1 against the dollar and firmed 0.05 percent to 70.7 versus the euro.

"Given the great run we've had, seems like some sort of pullback wouldn't be surprising", said Michael Baele, managing director of investments at U.S. Bank Private Wealth Management.

Mr. Trump's remarks on Tuesday that North Korea would face "fire and fury like the world has never seen" pushed Wall Street lower on Tuesday and drove up the VIX "fear gauge" of expected volatility on the S&P 500 higher.

Several indexes closed lower overnight.

Meanwhile, the U.S. dollar index has been surging since last Friday (August 4), when a better-than-expected United States jobs report boosted the greenback. Gold and bond prices were headed higher. Elsewhere, the retreat by the New Zealand dollar continued, with the kiwi hovering near a three-week low of $0.7319.

But "the yen may be expected to lose its safe haven status if U.S". The FTSE 100 index of leading British shares declined 0.6 percent.

Geopolitics aside, investors were also focused on USA economic data and monetary policy, following the release of inflation data, Erlam said. Odds of a Fed rate rise during the December meeting now stand at around 40% according to the CME Group's 30-day Fed Fund futures prices.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month. For the week, the metal rose 2.3 per cent the strongest weekly gain since the week ended April 13.

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