Markets recover after Korea shock and ahead of US GDP – business live

Investors calmer after Wall Street shrugs off missile launch; UK lending and US growth and jobs data awaited

The economic impact of tropical storm Harvey will not be felt until next month’s figures at the earliest, so the US data to be released later will be considered in the light of the next Federal Reserve meeting and the central bank’s interest rate policy.

Expectations of another US rate rise in the near future have receded – part of the reason for the recent weakness in the dollar – but stronger than expected figures today and on Friday with the non-farm payroll numbers could see sentiment change again.

Good morning, and welcome to our rolling coverage of the latest news from the world economy, the financial markets, the eurozone and business.

Stock markets look a little calmer after Monday’s slide in the wake of North Korea’s provocative missile launch over Japan. Investors took some reassurance from President Trump’s relatively measured response. Stating that “all options are on the table” is a lot less bellicose than promising “fire and fury”, so after an early fall the Dow Jones Industrial Average actually ended in positive territory, up 0.26%.

Our European opening calls:$FTSE 7367 up 29
$DAX 12006 up 60
$CAC 5062 up 30$IBEX 10258 up 66$MIB 21572 up 164

Having seen stock markets in Asia and Europe drop sharply and the traditional haven trades rally in the aftermath of North Korea’s provocative missile launch over Japan earlier this week, it wouldn’t have been a surprise to see US markets follow suit.

Despite the escalation in tension and the universal condemnation the missile launch has provoked, US markets, despite initially opening sharply lower, rallied strongly in the afternoon session to close the day higher.

Related: Tropical storm Harvey: Houston mayor imposes curfew – live

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