A powerful B-52 bomber flew low over South Korea in a clear show of force from the US as tensions increased between its ally Seoul and North Korea following Pyongyang’s fourth nuclear test.
The dismal start to trading in the new year showed no sign of abating as global markets tumbled after oil prices slumped to fresh 11-year lows.
London’s FTSE 100 Index dived 1.6% into the red, down 95 points at 6042.2, with indices across Europe also sharply lower as Brent crude dropped below 35 US dollars a barrel at one stage.
Sentiment had already been impacted by amid renewed worries over China after a poor report on the country’s services sector, while investors were also unnerved after North Korea claimed to have successfully carried out a hydrogen bomb test - its fourth since 2006.