US indexes were trading at session lows on Thursday afternoon, with the Dow and the Nasdaq posting triple-digit point declines, as investors fretted over escalating tensions between the United States and North Korea. Fear of military conflict helped to knock £40 billion off the value of London's stocks in three days, analysts said.
U.S. President Donald Trump on Thursday warned Pyongyang again, saying his previous promise to unleash "fire and fury" may not have been strong enough after North Korea responded with a threat to fire missiles over Japan to land near the U.S. Pacific territory of Guam.
In the United Kingdom, the stock of TV giant ITV was down 1.9 percent in early trading, and Sky shares were down 0.5 percent, while Germany's ProSiebenSat.1 fell 1.2 percent.
The recovery fit a recent pattern of investors using dips to put more money in stocks.
A Reuters Datastream index of more than 7,000 stocks across the globe saw its market capitalization drop from a record high $61.36 trillion on Monday to $60.43 trillion at the close on Thursday.
The Dow Jones was down 0.3% in opening trade, declining to 22,016.8 and the wider S&P 500 index dropped 0.48% to 2,463.18.
The Nasdaq Composite was down 115.35 points, or 1.82 percent, at 6,236.98. Nvidia fell $4.73, or 2.7 percent, to $167.38.
Emerging market stocks lost 1.28 percent.
Team Liquid Wins the Dota 2 International Tournament, $10.7 Million Grand Prize
After yesterday I think Liquid are on a huge upswing, if they can take game one I'm confidant they can with this series. To claim the Aegis of Champions today, they had to fight through a pool that kept the world at the edge of their seats.
The S&P 500 added 3.11 points, or 0.1%, to 2441.32, ending the week down 1.4%, its biggest loss since March.
But the yen added to an already-strong weekly rally of close to 1.5 percent, hitting its highest in nearly four months versus the dollar at 108.73 yen.
US government bonds strengthened Friday as soft inflation data led investors to further scale back expectations for interest-rate increases from the Federal Reserve.
In bond markets, the yield in U.S. Treasuries fell, also pressured by the lowered expectations for a Fed move. Wall Street was expecting more inflation.
Data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.
BONDS: Bond prices rose.
Investors on Thursday scampered to safe-haven assets such as gold and the Swiss franc, helping the precious metal hit a more two-month high.
About 6.22 billion shares changed hands on United States stock exchanges, slightly above the 6.15 billion average for the last 20 sessions.