FTSE Makes Gains as North Korean Tensions Ease

Mon, 11th Sep 2017

The FTSE 100 made some modest gains this morning, as the easing tensions in North Korea offset concerns that the aftermath of Hurricane Irma could be troublesome for the economy.

The FTSE 100 closed 19 points down on Friday, but got off to a modestly positive start on Monday, with overnight gains in Asia easing fears over the nuclear threat from North Korea. Some caution, however, may be required as investors are waiting for some key data from the Bank of England policy meeting, and from several UK fundamentals.

Asian markets made some substantial gains this morning, as North Korean leaders spent the weekend celebrating rather than focusing on political tensions. The Nikkei 225 benefited from the weak Yen, and gained more than 1.3 percent.

This week sill see some corporate updates, along with inflation numbers on Tuesday, and average earnings and unemployment data coming on Thursday. The update of most interest will be that from Primark owner Associated British Foods, which will be publishing its Q4 figures. Conditions at the company have been a key point of interest for some time now, and analysts expect that there will have been some sales growth at Primark, putting it on track for a strong trading year. It is also expected that there could be some upside risk for the discount retailer’s profitability if the Euro remains strong. However, the British Sugar side of the business could stand to benefit from the recent currency movements.

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