Wall St opens higher after tepid inflation data

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On Thursday, the three major indexes logged their worst performances since mid-May (http://www.marketwatch.com/story/us-stocks-set-up-for-another-day-of-losses-as-north-korean-tensions-simmer-2017-08-10) in a session dogged by escalating tension between the us and North Korea.

Benchmark 10-year notes US10YT=RR were last up 12/32 in price to yield 2.201 percent, from 2.242 percent late on Wednesday.

The euro slid 0.6 percent to 128.92 yen, and fell 0.1 percent against the dollar to $1.1735.

Japanese markets were closed for a holiday but the yen powered on, hitting an eight-week high of 108.91 yen to the dollar, adding to its biggest weekly gain since May.

"Traders should closely watch global equities today, with further falls and risk aversion likely pumping more safe-haven flows into precious metals", said Jeffrey Halley, a senior market analyst at OANDA.

Wall Street closed sharply lower after US President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US allies after it disclosed plans to fire missiles over Japan to land near the US Pacific territory. Oil also regained momentum as data pointed to declining USA inventories. Market participants are looking to Friday's U.S. Consumer Price Index data.

A small rise in a measure of USA consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favorable to equity investors.

In contrast to the USA market, global equities remained weak.

United States sanctions: Iran aims to boost military spending in retaliation
The bill will next head to a second vote before being submitted to a clerical body for final approval and passage into law. Mr Trump has recently backed away from his key campaign promise to withdraw from the nuclear agreement.


U.S. ECONOMY: Employers posted a record number of open jobs in June while a survey of small businesses showed optimism improving. The Shanghai Composite Index lost 0.4% to 3261.75 points. Seagate shares rose 74 cents to $32.29. Silver rose 1.7% to $16.70 per ounce. The Hang Seng index ended down 1.1% at 27444.00 points.

Crude futures extended losses on fears of slowing demand and lingering concerns over a global oversupply.

"I will tell you this, North Korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world", Trump said.

Trump warned North Korea again on Thursday not to strike Guam or US allies, saying his earlier threat to unleash "fire and fury" on Pyongyang if it launched an attack may not have been tough enough.

Macy's shares closed down 10.2 percent and Kohl's fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

As Tracy reported earlier Friday on "CBS This Morning", President Trump has fanned the flames of the rhetorical battle with North Korea even as he appeals to China to solve the crisis diplomatically.

Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control. The US currency was down 0.3 per cent at 109.94 yen, following a retreat to 109.740, its weakest since June 15th.

Meanwhile, the Russell 2000 index of small-cap stocks looked poised for a weekly drop of almost 3%, its biggest one-week decline since February 2016.

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