FTSE dips on Korean worries as financials, housebuilders take a hit

UK shares opened lower on Wednesday along with other European bourses, following the path set by Asia and Wall Street where market sentiment was hit by simmering geopolitical tensions in the Korean peninsula.

At 0810 GMT, Britain's blue-chip FTSE 100 .FTSE was down 0.36 percent at 7,346.74 points, with financials taking the most points off. 

Standard Chartered (STAN.L) was the second biggest loser on the index with a 2.2 percent fall, while HSBC (HSBA.L), Barclays (BARC.L), Lloyds (LLOY.L) all fell between 0.4 and 0,7 percent. 

Life insurers Prudential (PRU.L) and Old Mutual (OML.L) were both down about 1.2 percent and Provident PFG.L, which was the biggest FTSE faller on Tuesday, was down 1.4 percent. 

Britain’s biggest housebuilder, Barratt Developments (BDEV.L), sustained the most losses, with a 4.3 percent fall, as it said during its results it would continue to monitor “carefully” the impact of Brexit on its business.

Peer Berkeley (BKGH.L), whose shares took a 3.4 percent hit, said the London property market continued to be impacted by uncertainty surrounding Brexit and a property tax hike. Other companies in the sector were also retreating, with Taylor Wimpey (TW.L) down 1.1 percent. 

Royal Mail (RMG.L) was down 0.8 percent after Britain’s Communications Workers Union (CWU) said it would ballot more than 100,000 of its members over industrial action. 

Easyjet (EZJ.L) was down 0.5 percent at 1150p after HSBC cut its target price to 1550p from 1600p.

Glaxosmithkline (GSK.L) was down 0.7 percent after Credit Suisse cut its target price to 1725p from 1775p. 

Micro Focus (MCRO.L) shares surged 8.1 percent and were by far the best performing stock on the British blue chip index after its third quarter results.