FTSE 100 down as shares hit by US-North Korea tensions

Trader watching monitorImage copyright
AFP

The UK’s stock market has fallen more than 1% as worries over the situation between the US and North Korea continue to rattle investors.

On Thursday, Donald Trump said North Korea should be “very, very nervous” if it acted against the US.

In morning trade, the FTSE 100 fell 87.67 points, or 1.2%, to 7,302.27, having dropped 1.4% on Thursday.

Other markets in Europe also fell, with Germany’s Dax index down 0.6% and France’s Cac 40 dropping 1.25%.

Asian markets fell sharply, with Hong Kong’s Hang Seng index dropping 2%, while US stocks had ended lower on Thursday.

On the London stock market, mining shares saw the biggest falls as many metal prices were hit by the geopolitical concerns. Shares in Glencore, Rio Tinto and Anglo American were all down by more than 3%.

“The FTSE has carried on where it left off on Thursday, with yet another day of risk-off sentiment seeing investors shift out of equities,” said Joshua Mahony, market analyst at IG.

“The UK headline index has crashed to the lowest level since late June, in a week which has turned from mundane to insane.

“For a week that has been largely devoid of major economic releases, Donald Trump’s confrontational stance with North Korea has raised volatility across the board.”

Gold – generally regarded as a safer asset in times of uncertainty – hit its highest price for more than two months on Friday, touching $1,288.92 an ounce before slipping back.

On the currency markets, the pound slipped 0.1% against the dollar to $1.2968 but rose 0.1% against the euro to 1.1034 euros.

FTSE 100 down as shares hit by US-North Korea tensions

Leave a Reply

Your email address will not be published. Required fields are marked *