FTSE 100 watch: Footsie subdued as geopolitical concerns return
The UK benchmark index has started the week in negative territory, with North Korea’s nuclear test weighing on investor sentiment. In individual movers, Micro Focus (LON:MCRO) is underperforming the FTSE 100 as the group issued a statement ahead of its annual general meeting (AGM).
As of 12:28 BST, the Footsie had lost 17.28 points to stand 0.23 percent lower at 7,421.22. Sentiment has been subdued after news emerged that Pyongyang had tested a hydrogen bomb over the weekend.
“There is a thing called habituation. Markets are getting used to it, so whilst there is a bit of disquiet and there is a bit of noticeable reaction, I would suggest it is actually becoming more and more muted,” Ken Odeluga, market analyst at City Index, told Reuters. “Absent a significant escalation of rhetoric, maybe a significant escalation of the frequency, we are unlikely to see the markets really come off strongly.”
North Korea’s move meanwhile has fuelled demand for safe havens such as gold, which has sent shares in London listed precious metals miners Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) higher. Randgold’s share price is currently 1.90 percent up at 8,060.00p, while shares in Fresnillo are changing hands 2.47 percent higher at 1,657.00p.
In individual movers, shares in Micro Focus have been underperforming the broader market, as the company issued a statement ahead of its AGM, acknowledging that there had “almost been a year of uncertainty between announcement and completion of the” merger with HPE Software. The group noted that it could now concentrate on delivering the ‘medium term benefits’ of the tie-up. Micro Focus’ share price is currently 1.10 percent down at 2,239.00p.
The FTSE 100 index was 0.28 percent down at 7,417.80 points as of 12:55 BST on Monday, 04 September 2017.
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