The FTSE is down 20 points in early trading this morning. No doubt in part at least, due to the political tensions that surround the Korean Penninsular.
With the US ratcheting up their warnings and South Korea displaying their own show of force with missile testing, it’s the miners that are holding up the FTSE with Randgold Resources and Fresnillo the morning’s star performers. Investors are turning to the safe haven of gold as the threat of military action increases.
“While trading-nuance seems unlikely this Monday there is one piece of important UK data to try and break through the North Korea malaise: August’s construction PMI.” offered Spreadex Analyst, Connor Campbell, “Analysts are expecting the figure to rise from 51.9 to 52.1 month-on-month, something that could spur sterling into action.”
Over in the Eurozone, the DAX and CAC fell 0.5% and 0.4% respectively. The Eurozone indices aren’t just contending with the North Korea situation, but another positive start from the Euro’s leading up to Thursday’s ECB meeting.
US Equities closed Friday’s session on a positive note with the Dow Jones, S&P500 and Nasdaq all closing higher. However, with the US on holiday today for Labor Day, it is political developments in North Korea that are likely to determine direction for the financial markets today.
