Mary Grace

Cracks are showing in what has been a virtually non-stop U.S. equity rally after a rapid escalation of tension between North Korea and the United States this week.

Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea.

The dollar hit an eight-week low against the Japanese yen on Thursday, as the escalating tensions between the United States and North Korea drove investors to seek safety in assets viewed as less risky.

A measure of equity markets across the world climbed to a record high on Monday, boosted by gains in Asia, while U.S. and European markets were little changed, with U.S. energy shares capping gains on the benchmark S&P 500 index.

Oil prices dipped on Monday as a rebound in production from Libya’s largest oil field prompted selling, and investors worried about higher output from OPEC and the United States.

The U.S. dollar eased slightly on Monday, but clung to most of its gains following Friday’s robust U.S. jobs report, as investors await inflation data this week that may signal a turnaround in the currency’s weakness this year.

Asian investors, wary that the region’s stock markets and currencies have run up too far too fast and wondering whether it is time to take some money off the table, are finding that their concerns are not being reflected in major gauges of volatility and fear.

Britain is prepared to pay up to 40 billion euros ($47 billion) as part of a deal to leave the European Union, the Sunday Telegraph newspaper reported.