Markets up but North Korea worries still in sight

Markets Roundup

European Markets resumed normal service today with indices gaining ground from the retreat the previous day, due to fears of conflict in Asia. Although the rise and fall in tensions are still fresh in investors memories. The DAX advanced 0.47% with Heidelberg Cement rising 1.57%. Adidas and Deutsche Boerse followed with increases of 1.36% and 1.16%, respectively. The CAC 40 added 0.49% as ArcelorMittal jumped 2.7%.

The FTSE was up helped by a boost in equipment rental firm Ashtead after the blue chip company rose on the expectations of increased sales in the aftermath of Hurricane Harvey, whilst ITV rebounded from fears that its’ advertising market is shrinking.

The U.S markets were higher after reports showed stronger than expected U.S economic growth, having an upward revision of 2.6% in the second quarter GDP data. The report comes ahead of this Friday’s more indicative government payrolls of August. However, gains were limited by the geopolitical issue with escalating tensions between the United States and North Korea, especially after President Trump dismissed any diplomatic negotiations with Pyongyang.

Currencies

On the currency side, the euro retreated against the British Pound, helping the Sterling to come off its eight years low against the currency. In the afternoon the Pound was trading around 0.8pc higher against the European currency whilst it also traded in flat territory against the US Currency, despite the strong GDP data coming out of the U.S.

Oil

Crude prices fell around 1% on Wednesday as consequences of the Hurricane Harvey could still be felt since the storm led to shutting down of numerous refineries. According to Goldman Sachs, 23% of the United States refining capacity is shut.

At one point, US West Texas Intermediate crude for October delivery lost 0.93% to go for $46.11 a barrel. At the same time, Brent for October delivery traded 1.04% in the red, changing hands for $51.58 per barrel.

No Bids from Ryanair

Ryan Air holdings decided against making an offer for Germany’s bankrupt Air Berlin. The company stated that the process of resolving the situation in Air Berlin isn’t fair and open as Ryan air is not getting involved in the process.

The company stated that the insolvency was "triggered to put maximum pressure on politicians" in the run up to next month's election in Germany. It was also reported that the company went to regulators in the country and the European Union to look into what is being called as “conspiracy”

Emergency funding was triggered by the government in Berlin for the second-largest airline in the biggest economy of the Eurozone earlier this month when Etihad Airways decided to halt support.