European markets open lower on Friday

Frederick Owens
August 11, 2017

FTSE 100 index was trading at 7,326 levels, lower by 63.67 points, CAC 40 index was at 5,081 levels, down by 33.77 points, while the German DAX was at 11,997 levels, down by 16.82 points.

'The tension between the United States and North Korea is still dominating the news and it is looming over the financial markets.

In London, the FTSE 100 fell 0.6% to 7,498.06 (http://www.marketwatch.com/story/ftse-100-falls-as-us-north-korea-tensions-prompt-flight-to-safety-2017-08-09), and Spain's IBEX 35 slumped 1.3% to 10,596.00. Those marked the worst sessions for those benchmarks since July 21, FactSet data showed.

Even US investors have lost their calm, with the S&P 500 falling 1.5% yesterday, ending a 15-day streak of closing with a move of less than 0.3%, a 90-year record.

USA stocks joined the downward trend after investors were left rattled by President Donald Trump's "fire and fury" warning to North Korea.

There were falls of almost 2% on South Korea's Kospi and Hong Kong's Hang Seng, with markets in mainland China and Australia also down - taking their cues from sharp losses on Wall Street earlier. Additionally, China weighed in on the standoff, saying in an editorial in state-run Global Times that Beijing will intervene if the USA strikes first against North Korea.

More news: North Korea crisis puts cozy relationship in spotlight — Fox & Friends & Trump

He has now gone further, saying the warning may not have been tough enough and that if North Korea did what it had threatened, it faced "an event the likes of which nobody's seen before".

Mike van Dulken, head of research at Accendo Markets, said, "The negative European open comes as U.S".

The Swiss franc, meanwhile, looked set for its biggest one-day rise in more than two years.

Back on the Stoxx 600, shares of gold miners Fresnillo PLC (FRES.LN) and Polymetal International PLC (POLY.LN) leapt 4.9% and 3.3%.

The limited fall in the price of Asian stocks suggests that stockholders are not unduly alarmed, experts said.

The euro fetched $1.1748, not far off from $1.1752 late Wednesday in NY.

Other reports by LeisureTravelAid

Discuss This Article

FOLLOW OUR NEWSPAPER