FTSE 100 begins fightback following North Korea sell-off; eurozone industrial data disappoints

FTSE 100 snaps losing streak but still lags behind its European counterparts Investor anxiety over North Korea has subsided after a weekend of domestic problems for US president Donald Trump Internationally-exposed stocks hurt in last week’s war of words recover with banks Standard Chartered and HSBC leading the fightback Eurozone industrial data comes in softer than expected; muted reaction on the currency markets 4:31PM Factory slowdown dents confidence in eurozone economic boom Industrial output in Germany fell 1.1pc in the month Industrial output in the eurozone fell in June in an uncomfortable drop that suggests the economic boom may not be as strong as analysts hoped. Germany’s monthly output fell by 1.1pc while Ireland’s crashed by 7.5pc in the choppy short-term index. French industrial output dropped 1.2pc. Among the larger economies growth was recorded in Italy, at 1.1pc, and the Netherlands, at 1.2pc. Output fell by 0.6pc in June compared with May, led by a 1.9pc tumble in the production of capital goods and a 1.7pc fall in consumer durables. That pulled the annual growth figure down to 2.6pc, Eurostat said, below the 2.8pc economists had anticipated. Read Tim Wallace’s full report here 4:26PM Markets reaction: Drop in the fear index ‘tells you everything you need to know’ The stock markets have rebounded from last week’s North Korea-inspired sell-off The 16pc drop in the volatility index, also known as the fear index, “tells you everything you need to know” about the calmer markets today, according to CMC Markets analyst David Madden. He added: “While the war of the words has cooled-off, traders are using the ceasefire as an opportunity to pick up relatively cheap stocks. “The rapid escalation of tension between the two counties last week caught traders by surprise, and the knee-jerk reaction was to exit their position …Read the rest of this story

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