The FTSE 100 is rising this morning with the benchmark higher by 24 points after the market fell to its lowest level since early May during Tuesday’s session. The pound is trading little changed after falling to its lowest level against the Euro since 2009 yesterday - barring the flash crash seen last year.
Markets look to recover from N.Korea missile launch
A missile test from Pyongyang shocked markets yesterday as North Korea fired a warning shot implying that it will not sit idly and accept the recently announced UN sanctions. The news caused quite a stir with Gold prices jumping to their highest level of the year whilst equities took a tumble. These moves have pared somewhat this morning as the initial fears abate slightly, but there’s not really been any news to support a de-escalation of the situation. This is the second time in just a matter of weeks that North Korea have flexed their military muscles in an act of deliberate provocation and it appears unlikely that this is the last we’ll hear of the tensions. Whilst a full-blown nuclear war remains an extremely unlikely outcome, it is probable there will be more posturing and gesticulating towards such an outcome as North Korea attempt to push the boundaries with the US. The ultimate goal for Kim Jong-un appears to be securing the backing of Beijing in defending North Korea from the US, but the strategy being pursued is a risky one, especially with such an unpredictable and apparently impulsive leader currently in the White House.
ITV (LON:ITV) and Paddy Power Betfair look to bounce
The biggest gainer on the FTSE 100 so far today is ITV, with the broadcast company seeing its stock rise by just shy of 4% after recently hitting its lowest level in several years. Declining revenue from advertising, as was also evident in last week’s large drop in the share price of industry leader WPP (LON:WPP), is beginning to hurt the media sector which is amongst the worst performing areas seen across European stocks this year. The price action in bookmaker Paddy Power Betfair is similar, with the firm enjoying a decent move higher today in excess of 2% but the longer term picture for shareholders remains bleak. The stock has been accelerating lower in recent months as the firm continues to struggle to reap the benefits of last year’s merger between two of the largest players in the gambling market.