Markets mixed on Korean crises

On Tuesday markets attempted to stabilize as investors digested a host of catalysts from North Korean war threats and central-bank policy to tailwinds for oil and the aftermath of the German election. The euro weakened as European stocks drifted, while safe havens such as gold took a breather.

The yellow metal, the Swiss franc and the yen pared some of Monday’s gains, which followed North Korea’s declaration it could shoot down U.S. warplanes. Emergingmarket stocks headed for only their second four-day retreat this year, while equities were directionless in Europe as America continued to pursue a diplomatic solution to the crisis. The euro extended a slide sparked by an erosion in support for Angela Merkel in Sunday’s German poll. WTI crude hovered close to a five-month high as Turkey threatened to shut down Kurdish crude shipments.

Markets seem to have been oscillating between risk-on and riskoff stances since early August as tensions simmer on the Korean Peninsula. Equities have edged away from recent record highs as the U.S. and North Korea trade threats, and now an assortment of global political risks look set to further cloud the outlook.

The Stoxx Europe 600 Index fell 0.1 percent as of 7:17 a.m. New York time. The U.K.’s FTSE 100 Index fell 0.2 percent, as did Germany’s DAX Index. The MSCI All-Country World Index sank 0.2 percent to the lowest in more than two weeks. The MSCI Emerging Market Index sank 0.6 percent to the lowest in four weeks. Futures on the S&P 500 Index decreased 0.1 percent to the lowest in more than a week.

Japan’s Topix index closed flat after trading in a narrow range. South Korea’s Kospi index fell 0.3 percent and Australia’s S&P/ASX 200 Index lost 0.2 percent.

West Texas Intermediate crude decreased 0.1 percent to $52.18 a barrel. Gold declined 0.5 percent to $1,303.85 an ounce.