All the day’s economic and financial news, as shares rally in Europe and Asia * Latest: MSCI World Index at fresh highs * Introduction: Markets rally as North Korea refrains from missile test * Insurance firm shares rally as Irma hits Florida * Gold drops are investors ditch safe havens * Offshore wind costs hit record low 10.12am BST NEWSFLASH: WORLD STOCK MARKETS HAVE JUST HIT A RECORD HIGH. Shares are continuing to climb in Asia and Europe, on relief that North Korea didn’t conduct another missile test last weekend. ”Equity markets are staging a relief rally after a less painful weekend than feared. Despite the fact that North Korea is now warning of ‘pain and suffering’ if the UN council votes for new sanctions today, investors have largely decided that the risks are more rhetoric than reality. Although Irma is still causing some problems, the impact is far less than the worst-case scenario predictions, with insurance companies topping the performance tables today as the direct financial cost of Irma is likely to be far less than feared. “Nevertheless, the insurance costs of this year’s hurricane season are just one small part of the overall impact of Harvey and Irma, with investors and analysts now trying to work out who could be the big winners and losers from this year’s savage weather. Rebuilding and reconstruction are likely to be a central theme over coming weeks with the DIY and construction industries likely to be beneficiaries. Demand for new automobiles could be affected substantially by their growing susceptibility to damage from floodwater. Oil and oil product markets remain volatile as the knock-on effects of both Harvey and Irma may affect demand and supply for some time to come. Florida is also a key supplier of agricultural produce to the US and wider market, not least orange-juice. 9.50am BST Over in Greece technical teams of auditors representing the debt-stricken country’s creditors are flying in to prepare the ground for what officials are hoping will be a last and problem-free bailout review. Continue reading...
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