Korea tensions cast long shadow over markets

A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York U.S

A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York U.S

The FTSE 100 slipped by50 points, to 7,394, after having fell by 44 points on Wednesday and 108 points yesterday.

Update: The FTSE 100 has slumped further into the red amid persisting fears over North Korea tensions, with the sell-off accelerated by a slump in USA markets. There is little in the way of fundamentals to point to other outcomes, and investors are nervous that the rhetoric between the two country's leaders could escalate.

"While not necessary unexpected - as the USA had to respond to threats made by North Korea that they will fire rockets due to land just off the coast of Guam soon - new comments by Trump propelled stocks lower". Trump said that Kim-un Jong had disrespected his country and also said that he would not be getting away with it.

"We assume markets will move on if it remains purely a war of words but the selloff looks durable", he added.

Tensions with North Korea appear to have finally shaken the confidence of United States investors, after the S&P 500 opened 0.8% lower, threatening to end its 15-day streak with a closing streak of more than 0.3%, a 90-year record.

In the eurozone, the Paris CAC 40 dropped nearly 0.7 percent to 5,081.92 points compared with the closing level on Thursday. The core CPI has fallen short of expectations over the last four months, but there are some analysts that expect this streak to come to an end.