LONDON MARKETS: FTSE 100 Ends Lower As U.S.-North Korea Tensions Prompt Flight To Safety
August 09 2017 - 11:37AM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
One bright spot: Shares in gold producers as the metal
shines
U.K. stocks closed in the red Wednesday, as assets viewed as
risky were swept aside amid escalating tensions between the U.S.
and North Korea.
The FTSE 100 index was pulled down 0.6% to end at 7,498.06,
putting an end to a four-session winning streak.
Stocks across Europe , Asia and the Americas fell Wednesday
after North Korean leader Kim Jong Un made an explicit threat to
strike U.S. territory Guam
(http://www.marketwatch.com/story/north-korea-threatens-missile-strike-on-us-base-on-guam-2017-08-08).
His order, reported in state media, came hours after U.S.
President Donald Trump warned Pyongyang not to "make any more
threats" to the U.S., saying it would face a "fire and fury"
response
(http://www.marketwatch.com/story/trump-today-president-says-north-korea-faces-fire-and-fury-if-it-doesnt-halt-threats-2017-08-08)
"like the world has never seen." Trump's comments came after a
Washington Post report
(https://www.washingtonpost.com/world/national-security/north-korea-now-making-missile-ready-nuclear-weapons-us-analysts-say/2017/08/08/e14b882a-7b6b-11e7-9d08-b79f191668ed_story.html?utm_term=.0938becb046e)
that North Korea has built a miniaturized nuclear warhead.
"The reaction in financial markets has been for safe haven plays
to increase, with Treasury yields lower, whilst gold and the yen
have strengthened," said Richard Perry, market analyst at Hantec
Markets, in a note.
Read more:How Trump's threat of 'fire and fury' is rattling
stock-market calm
(http://www.marketwatch.com/story/how-trumps-threat-of-fire-and-fury-is-rattling-stock-market-calm-2017-08-09)
And see:Guam's governor says 'there is no threat' but U.S.
island 'will be defended'
(http://www.marketwatch.com/story/guams-governor-there-is-no-threat-but-american-island-will-be-defended-2017-08-09)
Korea's Kospi stock benchmark lost 1.1% as geopolitical concerns
grew, while U.S. stocks traded modestly lower
(http://www.marketwatch.com/story/us-stock-futures-pull-back-on-rising-north-korea-tensions-2017-08-09).
That is after the Dow Jones Industrial Average snapped a 10-session
streak of wins on Tuesday following Trump's comments.
"Equity markets have also come under pressure, with the
geopolitics bringing the run into record highs on Wall Street to an
end," Perry said. "However, geopolitically-driven moves tend not to
be long lasting in markets and moves are often quickly
retraced."
In London trade, gold producers were a bright spot as prices for
the metal leapt more than 1% to around $1,279 an ounce. Randgold
Resources Ltd. (RRS.LN) and Fresnillo PLC (FRES.LN) gained 2.8% and
4.9%, respectively,
On Tuesday, the London benchmark rose 0.1% and marked its
highest close since June 2
(http://www.marketwatch.com/story/ftse-100-pulls-back-from-2-month-high-as-miners-lose-ground-2017-08-08).
Stock movers: In other moves, Worldpay Group PLC shares (WPG.LN)
picked up 1.3% after Vantiv Inc. (VNTV) said it would pay about
GBP8 billion ($10.4 billion) in cash and stock to buy the U.K.
payments processor
(http://www.marketwatch.com/story/vantiv-seals-10-billion-worldpay-acquisition-2017-08-09),
completing one of the biggest deals in the quickly consolidating
sector.
Shares of G4S PLC (GFS.LN) fell 7.5% even as the
security-services company posted a rise in first-half earnings
(http://www.marketwatch.com/story/g4s-earnings-up-revenue-growth-seen-in-line-2017-08-09)and
projected revenue growth will be in line with its medium-term
target.
The pound bought $1.2999, up slightly from $1.2993 late Tuesday
in New York.
(END) Dow Jones Newswires
August 09, 2017 12:22 ET (16:22 GMT)
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