Investing.com - European stocks opened lower on Wednesday, as geopolitical tensions between the U.S. and North Korea dampened market sentiment and as lower oil prices weighed on the energy sector.
During European morning trade, the EURO STOXX 50 dropped 0.61%, France’s CAC 40 retreated 0.69%, while Germany’s DAX 30 declined 0.61%.
Markets were jittery after U.S. President Donald Trump said North Korea would be "met with fire and fury" if it continued its threats.
Pyongyang replied it was "carefully examining" a plan to strike Guam, where a U.S. military base is located.
Financial stocks were sharply lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) lost 1.10% and 0.98%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) tumbled 1% and 1.12%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) declined 0.41% and 1.28% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) retreated 0.12% and 0.92%.
The European Commission earlier announced it has approved Santander's plans to buy Banco Popular in Spain.
Meanwhile, concerns over the outcome of a meeting this week between OPEC members and non-members weighed on oil prices, which in turn pushed energy-related stocks lower.
French oil and gas major Total SA (PA:TOTF) fell 0.20% and Repsol (MC:REP) lost 0.31%, while Norwegian rival Statoil (OL:STL) tumbled 1.27%.
Separately, Engie SA (PA:ENGIE) saw shares decline 0.47% amid reports the French electric utility group is in talks to purchase a wind power plant based in Brazil from Renova.
On the upside, Novo Nordisk (CO:NOVOb) shares surged 3.36% after the Danish pharmaceutical company reported flat second-quarter net profit, but lifted its growth targets for the year.
In London, FTSE 100 dropped 0.49%, as U.K. lenders tracked their European counterparts lower.
Shares in HSBC Holdings (LON:HSBA) slipped 0.19% and Barclays (LON:BARC) dropped 0.50%, while Lloyds Banking (LON:LLOY) declined 0.79% and the Royal Bank of Scotland (LON:RBS) tumbled 1.13%.
Meanwhile, mining stocks were mixed on the commodity-heavy index. BHP Billiton (LON:BLT) eased 0.08% and Glencore (LON:GLEN) slipped 0.19%, while Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) jumped 1.88% and 2.04% respectively.
Legal & General Group PLC (LON:LGEN) was one of the worst performers on the index, with shares down 1.45% even as the insurer reported a 27% increase in first-half operating profit to £988 million, helped by strong performance in its retirement division.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.04% dip, S&P 500 futures signaled a 0.23% fall, while the Nasdaq 100 futures indicated a 0.27% slide.