Frankfurt's DAX 30 was 0.4 per cent lower at 11,961.60 points.
In the eurozone, the Paris CAC 40 dropped nearly 0.7 per cent to 5,081.92 points compared with the closing level on Thursday. The contract fell 97 cents, or 2 percent, to close at $48.59 a barrel on Thursday. The Shanghai Composite Index lost 0.2 per cent to 3,275.57 and Hong Kong's Hang Seng was off 0.3 per cent at 27,757.09.
On the macroeconomic slate, Statistics Canada reported new house prices eked up 0.2% nationwide in June, due largely to lack of momentum on prices in Southern Ontario. "Meanwhile, Trump knows that a conflict in North Korea could risk a huge amount of casualties and a huge humanitarian crisis on China's doorstep". Trump warned that the North would be met "with fire and fury". Stocks took a hit for a third straight day Thursday as North Korea's nuclear threats seemed again to roil the markets. "It will not last long", said Seo.
The damage inflicted on world stocks this week by the escalating war of words over North Korea has topped $1 trillion, it has emerged.
One potential obstacle is the world's central banks, which are providing less support for markets these days.
Wall Street was on track to extend that streak, but stocks retreated after President Trump promised "fire and fury" if North Korea makes any more threats against the United States. Energy stocks fell along with crude prices as investors kept an eye on the latest company earnings and geopolitical news.
Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in USA crude inventories, leaving prices volatile. "So we're not going to get to a year-over-year number of 2-percent until some of these very low readings drop out of the statistics 6 to 10 months from now".
The Labor Department also said unit labor costs rose by 0.6 percent in the second quarter following an upwardly revised 5.4 percent spike in the first quarter. Both were coming off record highs.
Emerging market stocks .MSCIEF lost 1.27 percent.
The common currency had lost about 0.4 percent overnight after news US job openings surged to a record in June reinforced Friday's robust payrolls data and supported the greenback.
On Thursday, Federal Reserve Bank of New York President William Dudley offered a positive outlook for the USA economy, job market and inflation, saying better conditions would help support the most vulnerable Americans.
Reuters data show a 22 percent perceived chance for a rate hike after the Fed's December meeting.
A report released by the Commerce Department on Wednesday showed wholesale inventories in the USA rose by slightly more than expected in the month of June.
"Few participants, however, think that North Korea would actually strike Guam at this juncture".
CURRENCIES: The dollar slipped to 109.05 yen from 109.20 while the euro weakened to $1.1763 from $1.1773. The euro edged down to $1.1727 from $1.1751.
The greenback also came under pressure after New York Federal Reserve President William Dudley cautioned it would "take some time" for U.S. inflation to reach the bank's two percent target, the latest warning price pressures remain muted.