Markets were weaker, but the muted reaction suggests investors remain unbowed for now despite escalating rhetoric.
HONG KONG — Saber rattling between the United States and North Korea sent financial markets in Europe and Asia modestly lower on Wednesday as investors shifted their money into assets considered to be havens in times of trouble.
Stocks in France and Germany were down nearly 1 percent in early trading, while the FTSE 100 share index in London fell 0.5 percent. Those moves came after stocks in Japan and South Korea had fallen a little more than 1 percent, while futures markets suggested shares in the United States could open modestly lower as well.
Investors appeared to be moving their money into the relative safety of bond markets. Yields on British and European bonds, which move inversely to the price, were lower on Wednesday morning. The price of gold, which tends to perform well in times of high tension, was also up.
The weaker markets followed President Trump’s warning to North Korea that it would see “ fire and fury like the world has never seen ” if it continued to threaten the United States. Several hours later, North Korea said it was considering a strike that would create “an enveloping fire” around Guam, the Pacific island where the United States stations military personnel.
Still, the limited reaction suggests investors have not yet become alarmed by the escalating rhetoric. North Korea has long loomed as a potential disruptive force in Asia, and even South Korean investments have been largely stable during past provocations.
Most Asian markets have made significant gains in recent months as part of a strong performance worldwide, thanks to improving corporate profits in the United States and elsewhere. Perceptions that China has managed problems like heavy debt and capital outflows fairly well for now, as well as slow but steady economic growth in Japan, have helped stocks in the region.
