European stocks fell Thursday, with caution still lingering as tension between USA and North Korea escalated, and as German consumer-goods company Henkel AG & Co. was among the companies whose shares pulled the market toward a second consecutive decline. The sell-off has extended to the European and Asian sessions on Friday.
The pan-European STOXX 600 index fell 1.1% and was down 2.8% on the week, led by miners, technology stocks and financials.
In Europe, Britain’s FTSE100 was down over one percent, Germany’s DAX traded 0.5 percent lower, while the French CAC40 index was 0.62 percent in the red, as of 9:00am GMT.
Hong Kong’s Hang Seng index has fallen by 1.66% on the day, and a short time ago dipped back below 27,000 after climbing above that mark in late July for the first time since 2015.
“Another negative open, third on the trot, comes after a U.S. equity selloff, inspired by fresh Trump aggression towards North Korea, made for a weak session in Asia overnight”, Michael van Dulken, head of research at Accendo Markets in London, said by e-mail.
“Of course it’s all come at a time when share markets are due for a correction, so North Korea has provided a ideal trigger”, he added.
“While not necessary unexpected – as the USA had to respond to threats made by North Korea that they will fire rockets due to land just off the coast of Guam soon – new comments by Trump propelled stocks lower”.
“While the US President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution“, Carnell said.