In the words of Ron Burgundy….. – Accendo Markets

In the words of Ron Burgundy….. – Accendo Markets

“Wellthat escalated quickly, really, that got out of hand fast!” 

Mike van Dulken, head of Research at Accendo Markets commented to clients this afternoon:

“Equities are nursing losses thanks to an unwelcome (unless of course you’re short!) escalation in geopolitical tensions between the US and North Korea, both trading nuclear threats that have awoken volatility from its slumber and seen risk assets shunned in favour of the traditional safe havens. The UK FTSE100 is getting most of its negative influence from Financials, Pharma, Miners and those with big international exposure as GBP strengthens against both USD and EUR. This is easily outweighing limited support from Vodafone, BAES Systems and precious metal miners Fresnillo and Randgold Resources. Germany’s DAX is sharply lower, in spite of a lower EUR, due to big losses for banks (Deutsche Bank, Commerzbank) like the FTSE, coupled with widespread weakness across a mix of insurers (Munich Re results), consumer and industrials. The FTSE 100 has broken below 7500, potentially the start of another leg lower, fuelled by 41pts of ex-divs tomorrow. The DAX 30 has fallen back to August rising support at 12125. Dow Jones Futures have found support at 22000. Gold has broken beyond August falling at $1266. Bullish flag to $1320?”

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