European Stocks Decline as North Korea - US Tensions Escalate

Judith Bessette
Agosto 13, 2017

The U.S. dollar set an eight-week low against the yen after U.S. President Donald Trump further ratcheted up the rhetoric, suggesting that his "fire and fury" comments may not have been tough enough.

"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.

The move came after North Korea said that it was examining a plan to attack the U.S. island of Guam in the Pacific, prompting the markets' move out of riskier assets such as equities.

The escalation of the rhetoric between the United States and North Korea is keeping market participants on their toes and with no fresh economic reports the price action is dictated by the headlines.

"The high drama has prompted traders to take their cash out of stocks, and invest it in safer assets like gold".

In the eurozone, the Paris CAC 40 dropped nearly 0.7 per cent to 5,081.92 points compared with the closing level on Thursday.

Jose Mourinho: I won't moan if Man United don't sign another player
The main issues that plagued United were the inability to finish matches off, especially at Old Trafford, and a lack of goals. United haven't lifted the Premier League trophy since 2013, which was Sir Alex Ferguson's last season in charge.

The pound has slipped by 0.1 percent versus the dollar, but has gained 0.1 percent against the euro.

The FTSE 100 firm announced in March a year ago 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.

On the second tier, Domino's Pizza dropped 8.3p to 272p after the takeaway firm inked a partnership with its London franchise business.

The biggest risers on the FTSE 100 Index were Smurfit Kappa up 38p to 2,224p, Persimmon up 39p to 2,501p, DCC up 70p to 6,885p, Barratt Developments up 6p to 595.5p.

BT Group, Anglo American and Diageo were all among the biggest fallers as their shares began trading without the right to the latest shareholder payout.

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