Home news Markets slide for third day on political tension

Markets slide for third day on political tension


The FTSE 100 has fallen by more than 100 points in today’s trading so far, as investors continue to act on North Korea-related jitters.

Worldwide, stocks fell for a third day as North Korea increased tension between it and the US with a threat to land a missile just short of the US Pacific territory of Guam.
Just after 3pm, the FTSE 100 had fallen 115 points – more than 1.52% down, also pressured by losses in the commodity sector and disappointing British export figures.
By 3.08pm, it had fallen by 121 points or 1.6% and was on track for its worst day since April.
Falls were also seen on Wall Street, with the Dow Jones Industrial Average down 0.5% about 15 minutes into trading and the Nasdaq tumbling by 0.6%.
In European markets, the French CAC 40 was down 0.3% and Frankfurt’s DAX 30 shed 0.8%. The pan-European STOXX 600 hit its lowest level since the end of March, down 1%.
Oanda analyst Craig Erlam said: “Risk aversion is once again the name of the game… as geopolitical tensions mount and investors head for cover in the traditional safe havens.

“The war of words taking place between the US and North Korea at the moment, which includes very real threats of action, is taking its toll on investor sentiment.
“The level of risk aversion we’re seeing suggests traders still believe the prospect of military action is very small but precautions are still being taken nonetheless, as this still has the potential to escalate very quickly and unexpectedly.”
Asian markets struggled again, with Japan’s Nikkei feeling the pressure from the rise of the safe haven yen, which hit an eight-week high.
Hong Kong was down more than one per cent. Shanghai and Seoul were also down.
Markets had earlier stabilised as US Secretary of State Rex Tillerson had tried to ease the tensions, saying he did not believe there is “any imminent threat” to Guam and that diplomacy would prevail.

Source: Sky News