Europe Stocks Drop to Lowest Since March on North Korea Concern

(Bloomberg) -- European equities fell for a second day to close at the lowest level since March as geopolitical tensions between North Korea and the U.S. persisted.

The Stoxx Europe 600 Index fell 1 percent at the close. The benchmark slid 0.7 percent yesterday, joining a global selloff, after U.S. President Donald Trump heightened his rhetoric against the regime of Kim Jong Un to an unprecedented level. The VStoxx Index of euro-area volatility gained 26 percent, after a 17 percent jump the previous day.

• Following Trump’s warning of unleashing “fire and fury,” North Korea outlined a detailed plan to fire four intermediate-range ballistic missiles at the U.S. territory of Guam by mid-August. South Korea and Japan warned that North Korea would face a strong response if it did so.
• All 19 industry groups fell. Banks retreated the most in more than three weeks.
• Basic resources firms widened a two-day loss to 2.1 percent. Glencore Plc helped lead a gauge of miners to the biggest decline among industry groups. The world’s largest commodities-trading house lost 2.5 percent after reporting first-half earnings that trailed estimates.
• Galapagos NV jumped 8.3 percent after saying its drug halted disease progression in a trial of patients with idiopathic pulmonary fibrosis.

--With assistance from Elena Popina

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net.

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Courtney Dentch