Markets fall as North Korea jitters spread

Market report Perry Gourley

European markets shifted into reverse as North Korea’s nuclear bomb test ratcheted up tensions with the United States and fuelled another round of selling.

The FTSE 100 Index closed down 27.03 points to 7,411.47, after Pyongyang detonated a hydrogen bomb underground on Sunday, sparking calls from UN Security Council members for further sanctions against the authoritarian nation.

Traders sought safe haven stocks as the fallout hit markets, with silver miner Fresnillo rising close to 3 per cent, or 47p, to 1,664p and Randgold Resources lifted 160p to 8,070p.

David Madden, of CMC Markets UK, said: “Traders are clearly nervous, as stocks are lower, but the sell-off today hasn’t been as bad as previous ones. This suggests that dealers are getting somewhat used to the situation.”

Household goods giant Reckitt Benckiser said four executives are to leave as it looks to bounce back from sluggish sales and a recent cyber attack.

Chiefs at its information technology, human resources, developing markets and marketing departments have all resigned from Reckitt, which is also behind products such as Durex and Dettol. It is thought the resignations are not linked and all have quit for separate reasons.

The quartet form part of a ten-member senior executive committee. Shares closed down 85p at 7,290p.

The biggest risers on the FTSE 100 included Next, up 93p to 4,227p, and DCC ,up130pto 7,270p. The group said it had acquired Us-based TSG which provides advisory and regulatory services across a number of sectors. The technology firm announced that its CEO is stepping down after the company decided to reverse £2.9m of revenues booked last year.