The UK benchmark index has fallen deep into the red for a second day, staying on track for a hefty loss this week, pressured by the ongoing tension between the US and North Korea which has fuelled a selloff in cyclical stocks. Coca-Cola HBC (LON:CCH) meanwhile has extended the previous session’s gains in the wake of its upbeat interim update.
As of 12:20 BST, the FTSE 100 index had lost 83 points to stand 1.12 percent lower at 7,306.94, staying on track to post a near three-percent loss for the week. The Footsie has come under pressure amid tension between North Korea and the US, as President Donald Trump said that Pyongyang’s threats would be met with ‘fire and fury’. North Korea meanwhile has threatened to strike Guam.
“We’ve had such a period of low volatility in the markets, coupled that with high valuation, it only takes a bit of a wobble to cause a reaction like we’ve seen,” Jonathan Roy, advisory investment manager at Charles Hanover Investments, told Reuters. “The miners have been quite resilient over the first few days of the sell-off, they held up relatively well, but today especially you’re starting to see that fall-out in mining stocks, so I think that brings in the question of Chinese demand.” Anglo American (LON:AAL) is currently leading other blue-chip miners lower, having shed 4.22 percent to 1,223.50p.
In individual movers, Coca-Cola HBC has advanced for a second session, following the group’s upbeat results yesterday. Citigroup meanwhile reaffirmed the blue-chip bottler as a ‘buy’ today, with a price target of 2,900p on the stock. Coca-Cola HBC’s share price currently stands 1.12 percent higher at 2,621.00p.
The FTSE 100 was 1.16 percent up at 7,304.48 points as of 12:35 BST on Friday, 11 August 2017.