MARKET REPORT

EUROPEAN markets shifted into reverse yesterday as North Korea’s nuclear bomb test ratcheted up tensions with the US and inspired another round of selling.

The FTSE 100 Index closed down 27.03 points to 7411.47, 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 out safe haven stocks as the fallout hit markets, with silver miner Fresnillo rising close to 3%, or 47p to 1,664p, and Randgold Resources lifted 160p to 8,070p. The price of gold was 0.7% higher at $1,334 an ounce.

David Madden, market analyst at CMC Markets UK, said: “Equity markets in Europe are in the red today as tensions surrounding North Korea were heightened again on the back of the nuclear bomb test carried out by the regime over the weekend.

“Traders are clearly nervous, as stocks are lower, but the sell-off today hasn’t been as bad a previous ones.”

The biggest risers on the FTSE 100 Index were Fresnillo up 47p to 1,664p, Next up 93p to 4,227p, Randgold Resources up 160p to 8,070p, DCC up 130p to 7,270p.

The biggest fallers were International Consolidated Airlines Group down 13.5p to 603.5p, Prudential down 34.5p to 1,788.5p, Provident Financial down 16p to 856p, Standard Life Aberdeen down 7.7p to 429.3p.