North Korea latest: World War 3 threat puts stock markets ON EDGE

Global stock indices plunged after the US President upped the pressure on the North Korean dictator with more sanctions and dubbed the leader “rocket man”.

Kim Jong-un called Mr Trump “mentally deranged” and threatened testing a hydrogen bomb in the Pacific.

The FTSE 100 was nervy after Asian stocks plunged overnight, and Wall Street losses continued on Friday.

The Dow Jones and S&P 500 both fell around 0.3 per cent.

And JP Morgan boss Jamie Dimon said North Korea is currently the biggest threat to mankind.

Safe haven gold saw its price rise back up, as investors looked to shelter cash amid the latest developments.

Joshua Mahony, market analyst at IG, said: “Global risk sentiment within the markets has taken a hit, as the US-North Korean standoff has ratcheted up once more.

“Coming off the back of Donald Trump’s threat that the US could totally destroy North Korea, they have finally responded in kind, with their foreign minister stating that the leader could detonate a hydrogen bomb over the Pacific.

“Unsurprisingly we have seen the value of gold and the yen gain ground, with overnight losses in Asian equities leading to a similarly downbeat tone in Europe in the early hours of trade.”

David Madden, market analyst at CMC Markets UK, said: “Pyongyang has threatened to test a hydrogen bomb in the Pacific. This comes after Donald Trump’s speech at the United Nations, and calls for tougher sanctions against the state.

“Traders are certainly keeping an eye on the developments in the region, but while there is no military action, there will be some investors who will hold their nerves through the tense stand-off.”