(Bloomberg) European stocks slumped, following drops in Asia and the U.S. as volatility soared and investors sought havens amid what hedge-fund manager Ray Dalio termed a game of chicken between U.S. and North Korean leaders.
The Stoxx Euro 600 Index headed for a five-month low, with every market sector in the red. Equity benchmarks from Hong Kong to Sydney extended losses earlier after the CBOE Volatility Index soared 44 percent on Thursday. U.S. President Donald Trump dialed up his warning to North Korea over threats to American allies. Gold held near a nine-week high, the yen briefly pushed through 109 per dollar and European government bonds strengthened. Oil was set for a second weekly decline.

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