Investing.com - European stocks opened lower on Friday, as geopolitical tensions continued to rattle markets around the world, while more European companies reported their latest earnings results.
During European morning trade, the EURO STOXX 50 declined 0.45%, France’s CAC 40 dropped 0.69%, while Germany’s DAX 30 slipped 0.21%.
Investors remained cautious as tensions escalated between Washington and Pyongyang after U.S. President Donald Trump warned the peninsula on Thursday against attacking Guam or U.S. allies and said his first threat to unleash "fire and fury" may have not been tough enough.
North Korea's state media had earlier said that Pyongyang has the capacity develop a plan by mid-August to launch intermediate-range missiles at the U.S. territory of Guam.
In an attempt to dial down the aggressive rhetoric, US Defence Secretary James Mattis said war would be "catastrophic" and that diplomacy was gaining results.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) tumbled 1.08% and 0.97%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) retreated 0.97% and 1.28%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) lost 0.45% and 1.18% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) declined 1.16% and 0.91%.
In earnings news, Innogy SE (DE:IGY) shares slid 0.65% after the German energy company said first-half earnings per share fell to €1.47 euros compared to €5.33 the prior year.
Telecom Italia (MI:TLIT) added to losses, with shares down 0.41% after the Italian government on Thursday extended the company’s deadline to hand over a report detailing the role of its top shareholder Vivendi (PA:VIV).
Vivendi shares were down 0.75% following the news.
On the upside, shares in Volkswagen (DE:VOWG_p) rose 0.35% after the German carmaker and Indian rival Tata Motors reportedly ended talks on an emerging markets merger.
In London, commodity-heavy FTSE 100 slumped 0.86%, weighed by sharp losses in the mining sector.
Shares in Anglo American (LON:AAL) tumbled Glencore (LON:GLEN) tumbled 2.90% and Antofagasta (LON:ANTO) lost 3.04%, while Glencore and Rio Tinto (LON:RIO) plunged 3.11% and 3.22% respectively.
In the financial sector, stocks were also sharply lower as the Royal Bank of Scotland (LON:RBS) declined 0.78% and Lloyds Banking (LON:LLOY) dropped 0.80%, while Barclays (LON:BARC) lost 1.04% and HSBC Holdings (LON:HSBA) tumbled 1.48%.
Old Mutual PLC (LON:OML) saw shares plummet 1.44% after the insurer said that it was on track to complete its break-up next year, with plans to float two of its biggest business.
Meanwhile, Coca Cola HBC AG (LON:CCH) remained one of the top performers on the index for a second consecutive day, with shares up 1.08% after the beverage company’s bottling plant operator on Thursday reported an increase in first-half earnings.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a flat open, S&P 500 futures signaled a 0.03% dip, while the Nasdaq 100 futures indicated a 0.16% fall.