Against the backdrop of geopolitical tension, market participants also focused on individual earnings.
The pan-European FTSEurofirst 300 index .FTEU3 lost 1.11 percent.
Macy's (M.N) shares closed down 10.2 percent and Kohl's (KSS.N) fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.
The Swiss franc eased about 0.2 percent to 0.9658 per dollar, having surged roughly 1.1 percent on Wednesday. "If the rest of the world remains supportive, then there's reason in these earnings to be encouraged about the direction of the Japanese market, which has sort of been in a holding pattern for the past two months".
USA stock index futures fell, with the S&P 500 indicated to open down 0.4pc after share prices fell in Europe and Asia. They outweighed gains in health care stocks and elsewhere. The deal-hungry cable and telecoms group announced an $185 billion bid for Charter Communications, the second-largest USA cable company with more than 26 million subscribers.
North Korea talk drags stocks lower; gold, yen rise
Shares of Snap were down as much as 14.23 percent and hit an all-time low following a miss on revenue and daily active users. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent.
Against the tense backdrop, the South Korean won extended its losses on Thursday and touched its lowest level against the dollar in about a month. But by the end of the day, traders appeared to take the geopolitical drama in stride.
Global stock markets are firmly in the red after another escalation of tensions between North Korea and the United States. Trump's comments followed reports the North has mastered a technology needed to strike the United States with a nuclear missile.
BONDS: Bond prices rose.
Adding to the modest losses posted in the two previous sessions, stocks moved sharply lower over the course of the trading day on Thursday.
USA gold futures for December delivery climbed 1 percent to $1,291.80 per ounce.
Stock markets lower, gold price continues to rise amid political tensions
The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the election. On the currency markets, the pound slipped 0.1% against the dollar to $1.2968 but rose 0.1% against the euro to 1.1034 euros.
The benchmark 10-year yield jumped to trade at 2.28 percent after the jobs openings and labor turnover survey showed a record number of job openings for June .
While the tough talk about the potential for war is scary, investors have heard it many times before.
"However, I do not believe the situation has reached a state of crisis, and rather think we may turn this into an opportunity to overcome the serious security condition".
Travel website operator Priceline Group Inc PCLN.O fell 6.9 per cent after a disappointing financial forecast. Australia's S&P/ASX 200 dropped 1.1 percent to 5,696.80.
In information released on Wednesday, US crude inventories fell for the sixth consecutive week according to the Energy Information Adminstration by 6.45 million barrels for the week ending August 4. In 3.14pm trading, the Standard & Poor's 500 Index inched 0.06 per cent lower.
Manchester United refuse to go above £90million for Gareth Bale
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