Geopolitical tensions hit the European markets

The European markets opened lower on Friday on the back of a war of words and escalating geopolitical tensions between the US and North Korea. The FTSE 100 index was trading at 7,326 levels, lower by 63.67 points; CAC 40 index was at the 5,081 levels, down by 33.77 points; while the German DAX was at 11,997 levels, down by 16.82 points. The pan-European Stoxx 600 was down by 0.8%.
 
The issues between North Korea and the United States have soared to an unprecedented level after President Donald Trump issued a new round of comments against North Korea, while warning it not to strike Guam or any US’ ally. He said that his first threat to unleash “fire and fury” may have not been tough enough.
 
As a result, the volatility index reached a nine-month high though it was close to record lows earlier this week – before the tensions sparked. Thus, investors were switching from stocks to safe-haven options. The dollar was at an eight-week low against the Japanese yen during Asian trading. In the business world, Innogy, Novozymes and Old Mutual are likely to present their latest figures on Friday.