European Markets Wobble on N.Korea Jitters
European stock markets wobbled Wednesday on investor jitters over North Korea's latest sabre-rattling.
London sagged 0.1 percent while Frankfurt and Paris eked out slender gains of 0.1 percent.
"Investors over in Europe are not ignoring the bout of risk aversion triggered by North Korea's ongoing missile tests," said analyst Naeem Aslam at trading firm Think Markets.
"The geopolitical tensions remain a major threat for the global stability and economic health and traders would not ignore this fact."
Traders ran for the sidelines after Washington confirmed that Pyongyang had for the first time tested a missile capable of reaching the United States, ratcheting up pressure on the already tense Korean peninsula.
Sentiment was somewhat subdued with Wall Street having been shut Tuesday for the Independence Day holiday.
Investors meanwhile waited on Wednesday's publication of minutes from the US central bank's most recent meeting, ahead of key jobs data on Friday.
"The Federal Reserve will release the minutes from the June meeting and investors will get an insight into what the US central bank was thinking when it raised interest rates for the second time this year," said CMC Markets analyst David Madden.
"Since then, Janet Yellen, the chair of the Federal Reserve announced there will be further monetary tightening, but it will be 'timely and predictable'."
The Fed last month raised its benchmark interest rate by a quarter point to 1.0-1.25 percent.
The US central bank said it expected to lift borrowing costs for a third time this year, brushing aside weaker inflation and consumption data in recent weeks.
Earlier on Wednesday, Asian equity markets rebounded to sit mostly higher as early nervousness over North Korea gave way to bargain-buying.
Despite those gains, dealers remain on edge and are now awaiting the next development after Russia and China issued a joint appeal to ease tensions while the United Nations Security Council will hold an emergency meeting later in the day.
The test came just as the US was preparing to celebrate Independence Day and days before a G20 summit, where it will likely top the agenda.
It was the latest provocation by North Korean leader Kim Jong-Un who is determined to develop a nuclear weapons programme he says is needed to ward off invasion.
South Korea and the US on Wednesday launched a barrage of missiles simulating a precision strike against Pyongyang, in response to the provocation.
"Traders and investors may be wondering what reaction this latest missile test will get," said Greg McKenna, chief market strategist at AxiTrader.
- Key figures around 1000 GMT - London - FTSE 100: DOWN 0.1 percent at 7,351.30 points
Frankfurt - DAX 30: UP 0.1 percent at 12,445
Paris - CAC 40: UP 0.1 percent at 5,181.50
EURO STOXX 50: DOWN 0.2 percent at 3,137.80
Tokyo - Nikkei 225: UP 0.3 percent at 20,081.63 (close)
Hong Kong - Hang Seng: UP 0.5 percent at 25,521.97 (close)
Shanghai - Composite: UP 0.8 percent at 3,207.13 (close)
New York - CLOSED for public holiday
Euro/dollar: DOWN at $1.1342 from $1.1346 at 2000 GMT Tuesday
Pound/dollar: DOWN at $1.2896 from $1.2923
Dollar/yen: UP at 113.59 yen from 113.28 yen
Oil - Brent North Sea: DOWN 71 cents $48.90 per barrel
Oil - West Texas Intermediate: DOWN 73 cents at $46.34
Source: Agence France Presse
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