European stocks drift lower with focus on US, North Korea

LONDON: Europe's main stock markets churned lower on Thursday as dealers awaited US jobs data and kept a wary eye on heightened tensions over North Korea.

Investors will digest US private firms' employment data on the eve of Friday's government non-farm payrolls numbers for a health-check on the world's largest economy.

"In focus today will be the latest US ADP employment change, widely viewed as a warm up for tomorrow's NFP report," said analyst Mike van Dulken at Accendo Markets.

"The print may be even more pertinent after Fed minutes suggested allowing unemployment to fall too low could result in the economy overheating and produce financial excesses."

The dollar was little moved after minutes of the Federal Reserve's June meeting indicated interest rates would rise again this year as expected but provided no clarity on the bank's plan to wind down its multi-trillion-dollar investment holdings.

Ahead of the jobs data, Asian stock markets mostly sank Thursday with equity traders on edge after North Korea's latest missile test and warnings from the US it would use force to deal with the nuclear-armed state.

US President Donald Trump meanwhile lashed out Thursday at North Korea's military sabre-rattling, calling on the global community to ensure there are "consequences" for Pyongyang's belligerence and warning that he is considering a "severe" response.

"I call on all nations to confront this global threat and publicly demonstrate to North Korea that there are consequences for their very, very bad behaviour," Trump said during a visit to Warsaw.

"I have pretty severe things that we're thinking about," Trump said, but added: "That doesn't mean that we'll do them."

Investor sentiment was dented also by oil prices sliding on Wednesday, traders said.

Crude fell around four percent, before Thursday's rebound, on renewed concerns about a global supply glut that overshadowed data pointing to a drop in US stockpiles.

Investors are worried that an output cut agreed by OPEC and Russia will not be enough to offset rising production from the US and other nations including Libya and Nigeria.

- Key figures around 1030 GMT -

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London - FTSE 100: DOWN 0.5 percent at 7,329 points

Frankfurt - DAX 30: DOWN 0.6 percent at 12,379

Paris - CAC 40: DOWN 0.8 percent at 5,137.70

EURO STOXX 50: DOWN 0.7 percent at 3,119.60

Tokyo - Nikkei 225: DOWN 0.4 percent at 19,994.06 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 25,465.22 (close)

Shanghai - Composite: UP 0.2 percent at 3,212.44 (close)

New York - DOW: FLAT at 21,478.17 (close)

Euro/dollar: DOWN at $1.1348 from $1.1350 at 2100 GMT Wednesday

Pound/dollar: DOWN at $1.2931 from $1.2933

Dollar/yen: UP at 113.30 yen from 113.24 yen

Oil - Brent North Sea: UP 64 cents $48.43 per barrel

Oil - West Texas Intermediate: UP 64 cents at $45.77