Traders dump stocks as missile tensions heighten

nerves. The stand-off between the US and North Korea never went away, and as of last night it is back in the forefront of traders’ minds.

“Tensions have shifted up a gear, and dealers are dumping stocks as they don’t want to remain long while the political situation plays out.”

On the currency markets, the pound was experiencing a mixed session, slipping 0.3 per cent against the euro to 1.07, but rising 0.1 per cent versus the US dollar to 1.29.

The greenback was down against a host of major currencies, helping the euro reach an 18-month high and break through the psychologically important $1.20 mark.

The fall was driven by anxiety over North Korea coupled with concerns about a potential hit to the US economy from tropical storm Harvey.

Traders were also pencilling in the prospect of US Federal Reserve holding back from increasing interest rates this year.

The oil price also responded to the severe weather hammering Houston, Texas, as production was hampered by a number of refineries going offline.

However, gains at the beginning of the session eased back by the time the FTSE 100 closed, with Brent crude dropping 0.6 per cent to $51.59 a barrel.

In UK stocks, precious metal miners were among the biggest risers as investors sought out safe havens.

Silver miner rose 2.5 per cent, or 41p to 1,621p, while

climbed 4.5 per cent or 345p to 7,915p.

Outsourcing firm was also down despite profits rising sharply in the first half of the year as it reaped the rewards of growth in the US.

Shares were off 49p to 2,283p as the group posted a 20 per cent rise in revenue to £4.1 billion and pre-tax profit increased 17 per cent to £181.9 million in the six months to June 30.

Bunzl has been buoyed by a string of acquisitions in North America, where it books the vast majority of its revenue, and the Brexit-induced collapse in sterling.

The biggest risers on the FTSE 100 Index were Randgold Resources, up 345p to 7,915p; Fresnillo, up 41p to 1,621p;

up 14p to 1,353.5p; and

up 32p to 3,216p.

The biggest fallers were down 7.9p to 153p; down 9.3p to 242.1p;

down 69p to 2,280p; and down 73p to 2,647p. MAJOR US stock indexes ended higher after recovering from steep early losses triggered by fears hostilities in the Korean Peninsula could escalate.

Market analysts were relieved the rift did not escalate further, with President Donald Trump’s focus on the devastation caused by Tropical Storm Harvey.

The storm shuttered refineries across the US energy hub in Texas but energy shares were little changed.

The Dow Jones Industrial Average rose 56.97 points, or 0.26 per cent, to 21,865.37, the S&P 500 gained 2.06 points, or 0.08 per cent, to 2,446.3 and the Nasdaq Composite added 18.87 points, or 0.3 percent, to 6,301.89.

Gains in the Nasdaq were led by the largest names, with

and the biggest US.companies by market value, all higher.

tumbled 11.9 per cent to $55.02 after the No 1 US consumer electronics retailer warned its strong quarterly sales performance should not be seen as a new normal.

rose 2.9 per cent to $118.70 as it made progress in talks to acquire aircraft component manufacturer

to bulk up its aerospace business. Rockwell’s shares rose 2.1 per cent to $130.74.

1.9 per cent to $52.73 after cut its price target by $4, to $64.

About 5.3 billion shares changed hands in US exchanges.