Stock markets extend losses at open

Gladys Abbott
August 13, 2017

"It looks like a technical correction, but if there's more bad news in the days to come, or if geopolitical tensions escalate, this short-term correction could become a major correction for stock markets here and globally", CMC Markets analyst Margaret Yang said.

Keeping up his tough talk, U.S. President Donald Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face the consequences, and suggested that his earlier threat to unleash "fire and fury" on North Korea was too mild.

The yen strengthened above?109 for the first time since mid-June and oil extended overnight losses on persistent worries about oversupply, while gold prices hit their highest level in over two months. The FTSE 100 in London and the CAC 40 in Paris each slid 1.2%.

"Another negative open, third on the trot, comes after a United States equity selloff, inspired by fresh Trump aggression towards North Korea, made for a weak session in Asia overnight", Michael van Dulken, head of research at Accendo Markets in London, said by e-mail.

"For the time being, tensions seem to be going one way, and equity markets are losing ground because of it".

The Russian dollar-traded index RTS was down 1.49 percent, and ruble-traded MICEX fell 1.29 percent by midday.

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The pound was down 0.1% against the euro at 1.10.

OIL: Benchmark U.S. crude lost 24 cents to $48.37 per barrel on the on the New York Mercantile Exchange while Brent crude, used to price global oils, declined 20 cents to $51.70 per barrel in London.

The International Energy Agency said Opec members were not complying with production cuts, which were holding back efforts to rebalance the market quickly.

The FTSE 100 firm announced in March previous year that it would run its US-based asset management operation, its UK-based wealth unit, an emerging markets division and Nedbank in South Africa as separate businesses.

In the FTSE 250, shares in Cineworld rose 3.7% after the cinema chain reported surging sales and profits.

On the second tier, Domino's Pizza dropped 8.3p to 272p after the takeaway firm inked a partnership with its London franchise business. Shares in Glencore, Rio Tinto and Anglo American were all down by between 2.8% and 3.1%.

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