LONDON MARKETS: FTSE 100 Slips As Renewed U.S.-North Korea Tensions Sap Risk Appetite
August 21 2017 - 3:48AM
Dow Jones News
By Carla Mozee, MarketWatch
U.K. stocks sagged Monday, falling alongside European and Asian
stocks as tensions between the U.S. and North Korea came back in
focus.
The FTSE 100 shed 0.2% to 7,313.37, with only the basic
materials sector showing an advance. The index on Friday fell 0.9%
(http://www.marketwatch.com/story/ftse-100-drops-as-travel-shares-rattled-after-terrorists-attacks-in-spain-2017-08-18),
reducing its weekly advance to 0.2%.
European and most Asian stocks started the week in the red as a
new cycle of escalation on the Korean Peninsula appeared set to rev
up as U.S. and South Korea kicked off annual military exercises
(http://www.marketwatch.com/story/tensions-expected-to-rise-as-us-south-korea-start-annual-war-games-2017-08-20).
Pyongyang warned on Sunday that the upcoming exercises are
"reckless behavior driving the situation into the uncontrollable
phase of a nuclear war."
"North Korea tensions should remain elevated with the U.S. and
South Korea holding joint military exercises from today to 31
August. North Korea condemns the joint exercises as a rehearsal for
an invasion," said Sue Trinh, head of Asia FX strategy at RBC, in a
note.
"We think volatility is more likely to pick up in and around the
week beginning Sept. 4, coinciding with implementation of the
latest sanctions and North Korea Foundation Day," she said.
Tensions between the U.S. and North Korea recently led investors
to flee so-called risk assets and pick up haven assets including
gold , bonds and the Swiss franc .
Mining shares managed to push higher even as a risk-off mood
hung over the equity markets. Iron ore heavyweights BHP Billiton
PLC (BLT.LN) (BHP.AU) (BHP.AU) and Rio Tinto PLC (RIO) (RIO) (RIO)
were up by 1% and 1.3%, respectively. Earlier Monday, rival
Australian iron ore producer Fortescue Metals Group Ltd. (FMG.AU)
raised its dividend payout after annual profit more than doubled
(http://www.marketwatch.com/story/fortescue-metals-profit-jumps-flags-dividend-rise-2017-08-21)
on strong iron ore prices.
Metals prices were broadly higher, and shares of copper miner
Antofagasta PLC (ANTO.LN) picked up 0.8% and Glencore PLC (GLEN.LN)
moved up 0.6%.
Housing shares were mixed Monday after Rightmove said the
average asking price for houses fell 0.9% in August. Persimmon PLC
shares (PSN.LN) rose 0.8%, Barratt Developments (BDEV.LN) was off
0.1% an Taylor Wimpey PLC (TW.LN) gained 0.2%.
The pound bought $1.2859, lower than $1.2876 late Friday in New
York.
(END) Dow Jones Newswires
August 21, 2017 04:33 ET (08:33 GMT)
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