European Stocks Drop Most in 9 Months This Week on GeopoliticsBy
European equities dropped for a third day, sealing their biggest weekly drop since November, as volatility spiked amid intensifying geopolitical tensions between the U.S. and North Korea.
The Stoxx Europe 600 Index dropped 1 percent at the close, widening a three-day decline to 2.8 percent, as U.S. President Donald Trump stepped up his warning to North Korea over its threats to American allies. Stocks fell to the lowest since February on Friday as the VStoxx Index of euro-area volatility gained 2.1 percent to its highest level since April.
- Following Trump’s warning of unleashing “fire and fury” on North Korea earlier this week, the president warned the regime not to follow through with a missile test near Guam, promising massive response to any strike against the U.S. or its allies.
- All 19 industry groups on the Stoxx 600 fell. A gauge of mining shares sank 2.6 percent, with shares of Rio Tinto Group and Glencore Plc among the biggest decliners amid drops in iron ore and steel prices. ArcelorMittal, the world’s top steelmaker, dropped 4.5 percent.
- Dixons Carphone Plc tumbled 7.2 percent to close at the lowest level since October 2013, after an analyst recommended selling the shares due to concerns about the mobile market.
— With assistance by Elena Popina