North Korean state TV just said they'd warn the residents of Guam a few hours ahead of the "tests" they will perform (firing FOUR missiles at the U.S. Territory of GUAM around the middle of August) and warns them to stay inside and not look at the sky when the warheads detonate 30 KM away or they could be blinded.
It seems that this "show of force" by North Korea will use actual nuclear warheads, which they will detonate 30-40km off the coast of GUAM! If they actually go ahead and do this, it means nuclear war, even if the missiles do not actually hit GUAM.
The Korean news broadcast segment in the video below provides coverage of North Korea's initial announcement of their intention to fire missiles at GUAM. Today's further news about residents being warned "not to look at the sky or they could be blinded" is rapidly developing.
Stock markets around the world are falling on this news from North Korea with ALL major indices down significantly and falling further:
U.S. equities fell on Thursday as tensions between the United States and North Korea persisted.
The Dow Jones industrial average fell about 130 points with Goldman Sachs and Apple contributing the most losses.
The S&P 500 declined 0.8 percent, with information technology and financials leading all sectors lower. The Nasdaq composite pulled back 1.2 percent, with Apple, Alphabet, Amazon and Netflix all trading lower.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, soared more than 33 percent to trade at 14.80.
|S&P 500||S&P 500 Index||2455.91||
Earlier this week, President Donald Trump said that North Korea would face "fire and fury" if it continued to threaten the States, however North Korea has dismissed these warnings by the U.S. incumbent as a "load of nonsense."
The iShares MSCI South Korea capped exchange-traded fund (EWY), which tracks South Korean stocks, fell 1.7 percent Thursday.
Traditional safe havens have seen solid inflows as tensions have increased. Gold futures have risen nearly 2 percent this week, while the Swiss franc has advanced 0.7 percent against the U.S. dollar.
"We're through most of the earnings season and the valuations [in the stock market] become a bit problematic when you have something like North Korea come up," said Maris Ogg, president at Tower Bridge Advisors.
Equities, meanwhile, have slipped across the world but hadn't posted a meaningful pullback since the two nations started taking verbal jabs at each other.
The S&P was only down 0.1 percent for the week entering the session. In Europe, the Stoxx 600 index has fallen 1.2 percent for the week.
"Our assumption is that the 'battle of the bombasts' will remain verbal for the foreseeable future and that Guam will drop out of the headlines as quickly as it has been inserted into them," Michael Shaoul, chairman and CEO of Marketfield Asset Management, said in a note.
"It remains possible that we will see another brief lurch downwards, particularly in the technology sector that seems to be the locus of hedging activity, but the chances of this developing into a meaningful correction still looks remote at the current time," Shaoul said.
Guam’s Mayor Eddie Calvo reassured his 200,000 citizens that an attack on Guam is an attack on the United States.
Mayor Calvo: “We encourage everyone to go through their lives and live them like you would any other day. As far as I’m concerned, as an American citizen, I want a president that says that if any nation such as North Korea attack Guam, attack Honolulu, attack the west coast, they will be met with Hell and fury.”
North Korea has just publicly declared its intent to "test" nuclear devices "in the atmosphere above international waters." They apparently believe they can call this a "test" fire live nuclear missiles at GUAM, and somehow this won't qualify as an act of war. They're wrong.