FTSE 100 takes cover from war of words over South Korea

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South Koreans watch a television displaying news broadcasts reporting on North Korea at a station in Seoul today. Fear of military conflict helped to knock £40 billion off the value of London's stocks in three days, analysts said.

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

Escalating tension after U.S. President Donald Trump stepped up the rhetoric against North Korea has hit global stocks again in Asia and looks set to push Europe lower at the opening. The statement has dominated the headlines, and is one of the main drivers in the markets.

USA markets held steady in trade on Friday, with the Dow Jones up 0.2%.

The South Korean Won is also suffering, falling by 0.8% to a four-week low against the United States dollar.

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On the currency markets, the pound was up 0.03% against the dollar at $1.2981 but down 0.23% against the euro at 1.0999 euros.

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 past 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.

The group said it will pay £24 million for the stake in the firm, which will consist of 25 existing Domino's stores in the capital.

Housebuilders Persimmon and Barratt Developments were among the biggest gainers of the day, up 1.58% and 1.02% respectively. Shares in Glencore, Rio Tinto and Anglo American were all down by between 2.8% and 3.1%.

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