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London Markets: FTSE 100 rebounds from 3-month low as North Korea tensions subside

U.K. stocks broke a three-session losing run on Monday as investor anxiety over tensions between the U.S. and North Korea subsided after officials sought to reassure Americans that there won’t be a nuclear war.

The FTSE 100 index UKX, +0.48% rose 0.5% to 7,343.26, rebounding from its lowest close since May 8, reached on Friday. The blue-chip benchmark last week slid 2.7%, suffering its biggest weekly decline since the week ending April 21, when Prime Minister Theresa called an early election.

The downbeat mood last week was spurred by a war-of-words between U.S. President Donald Trump and North Korean leader Kim Jong Un, which fueled fears of military action on both sides.

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