North Korea tensions send European shares to six-month low

  • Reuters
  • Stock Market News
North Korea tensions send European shares to six-month low
Credit: © Reuters.

By Helen Reid and Danilo Masoni

LONDON, Aug 29 (Reuters) - Rising geopolitical tensions sent European shares to their lowest in six months on Tuesday after a missile launch by North Korea sent jitters through Asian trading.

The pan-European STOXX 600 .STOXX fell 1 percent, firmly on track to make August its third month in a row of losses.

Euro zone stocks and blue-chips also slipped 0.9 percent while Britain's FTSE .FTSE and France's CAC 40 .FCHI both fell 1 percent.

North Korea fired a missile over northern Japan, prompting reprimands from the Japanese government and hitting Japanese and Korean stocks and the U.S. dollar. jitters spread to European markets, all sectors fell and among the only bright spots were gold miners Randgold Resources RRS.L and Fresnillo FRES.L , up 2.6 to 3.2 percent as the price of gold soared to a 9 1/2 month high as investors rushed into safe haven assets. VSTOXX .V2TX , a gauge of European investor anxiety, jumped to its highest in a week.

The media sector .SXMP suffered the heaviest losses as Prosiebensat PSMGn.DE fell as much as 12 percent after the German television company said it was looking for investors for its TV production and e-commerce units. downgrade from Goldman Sachs (NYSE: GS ) also weighed on the shares.

German peer RTL Group RRTL.DE also fell 7 percent.

With the Jackson Hole symposium yielding no big change to monetary policy expectations, and an earnings season met with lukewarm share reactions, catalysts to support European equities were scarce and some investors expected a correction, though valuations in the region remained attractive relative to Wall Street.

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