Europe open: Stocks pull back on geopolitical tensions
Shares started the morning on a down note following further provocative remarks out of Pyongyang which were followed by a quick response from the US president.
Responding to recent provocative remarks from the North Korean government after the UN imposed sanctions on it at the weekend, president Donald Trump warned America would respond to any threat with "fire and fury".
"North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen... he has been very threatening beyond a normal state. They will be met with fire, fury and frankly power the likes of which this world has never seen before," Trump said.
Soon after, North Korea's state-run news agency said Pyongyang was mulling a potential missile strike against the US Pacific island territory of Guam.
Against that backdrop, as of 1000 BST the benchmark Stoxx 600 was down by 0.87% or 3.34 points to 379.30, with the German Dax off by 1.20% or 148.39 points at 12,143.31 and the Cac-40 retreating by 1.69% or 88.46 points to 5,130.43.
In parallel, traditional safe havens such as gold were and the Japanese yen were higher, with the former rising 0.79% to $1,272.60/oz. while dollar/yen was lower by 0.45% at 109.83.
Commenting on Wednesday's events, Mike van Dulken at Accendo Markets said: "Calls for a negative European open comes as US-North Korean nuclear tensions rise, dampening appetite for risk assets (equities, industrial commodities) in favour of traditional safe havens (gold, silver, bonds, Japanese Yen, Swiss Franc). That said, the market has, thus far, been limited (thicker skinned) with a mixed bag in Asia overnight following small losses for Wall St’s index trio."
On the economic front, the French central bank's industrial sentiment gauge jumped from a reading of 103 for June to 105 in July.
That led the monetary authority to forecast that the country's gross domestic product would expand at a 0.5% quarter-on-quarter pace over the three months to September.
Meanwhile, ISTAT reported that Italian industrial production grew by 1.1% month-on-month in June (consensus: 0.2%).
Shares in E.On were ahead after the German power group reported better-than-expected figures for the first six months of the year thanks to bigger margins at its key network business.
Dutch lender ABN Amro posted a better-than-expected 45% increase in its second-quarter underlying profits to €960m.
Novo Nordisk was higher after beating analysts' estimates for its latest quarter.