Investing.com - European stocks opened lower on Monday, as news that a nuclear missile test was conducted by North Korea over the weekend sparked fresh concerns over geopolitical tensions in the region.
During European morning trade, the EURO STOXX 50 dropped 0.42%, France’s CAC 40 slumped 0.38%, while Germany’s DAX 30 slid 0.44% by 03:40 a.m. ET (07:40 GMT).
Geopolitical threats resurfaced after North Korea said on Sunday that it had conducted a test of a hydrogen bomb intended to be mounted on an intercontinental ballistic missile.
Pyongyang called the test a complete success, with a greater yield than previous tests and no adverse impact on the environment.
The news prompted U.S. to warn of a "massive" military response if it or its allies were threatened.
U.S. President Donald Trump also threatened to cut off trade with any country doing business with North Korea.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) dropped 0.80% and 0.84%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) tumbled 0.95% and 1.03%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) slid 0.30% and 0.81% respectively, while Spanish bank Banco Santander (MC:SAN) lost 1%.
Elsewhere, Heidelbergcement AG O.N. (DE:HEIG) shares surged 2.71% after analysts at Ctigroup upgraded their rating on the stock from “neutral” to “buy”.
In London, commodity-heavy FTSE 100 slipped 0.12%, weighed by Micro Focus International (LON:MCRO), whose shares plummeted 1.06% after the software vendor announced this weekend that the $8.8 billion spin-off and merger of Hewlett Packard Enterprise's software business has now been completed.
Reckitt Benckiser Group PLC (LON:RB) added to losses, with shares down 1.02% after four of the household consumer group's top 10 executives announced their resignation as the company continues to battle the lowest sales growth in its history.
Financial stocks were also broadly lower, as HSBC Holdings (LON:HSBA) slipped 0.28% and Lloyds Banking (LON:LLOY) fell 0.34%, while the Royal Bank of Scotland (LON:RBS) declined 0.40% and Barclays (LON:BARC) dropped 0.73%.
Meanwhile, mining stocks were higher on the commodity-heavy index. Shares in Glencore (LON:GLEN) gained 0.46% and Antofagasta (LON:ANTO) advanced 0.47%, while Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) surged 2.53% and 2.91% respectively.
U.S. markets were set to remain closed on Monday for the Labor Day Holiday.