U.K. Shares Join Global Share Sell-off, Firm Pound Builds Up Pressure

U.K. shares reopened and dropped sharply on Tuesday after having been closed in the previous session for the August Bank Holiday. Joining a selloff in global stock markets, the FTSE 100 index tumbled after North Korea launched a ballistic missile over northern Japan.

The FTSE 100 index plunged by 1.40 percent to retest a firm support at 7,300.00 – lowest since August 21st as investors’ appetite for risky investments was sapped due to news that North Korea fired the first missile over the main lands of Japan since 2009.

While no sector traded higher, a strong pound also contributed to providing some downside. Sterling added more than 0.2 percent versus dollar, sending the pair GBPUSD to as high as $1.2966, compared with $1.2933 late Monday in New York. A stronger currency tends to hurt shares of multinational companies that make the bulk of sales and earnings overseas.

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