"European shares are trading once again lower. continuing their slide on the back of ever more increasing tensions between North Korea and the USA", added analyst Markus Huber at City of London Markets.
Stocks in France and Germany were down almost 1 percent in early trading, while the FTSE 100 share index in London fell 0.5 percent. Germany's DAX fared better, trading only 0.2 percent lower at 11,989.
The pound has slipped by 0.1 percent versus the dollar, but has gained 0.1 percent against the euro.
The stock market jitters came as North Korea outlined plans to launch missiles aimed at the waters off the coast of the US Pacific territory of Guam.
"While not necessary unexpected - as the USA had to respond to threats made by North Korea that they will fire rockets due to land just off the coast of Guam soon - new comments by Trump propelled stocks lower".
Keeping up his tough talk, U.S. President Donald Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face the consequences, and suggested that his earlier threat to unleash "fire and fury" on North Korea was too mild. The statement has dominated the headlines, and is one of the main drivers in the markets.
The Labour Department said that its Consumer Price Index inched up 0.1% last month, pointing to subdued inflation which could make Federal Reserve policy makers cautious regarding another interest rate hike in 2017. South Korea's KOSPI was down 1.7 percent and Hong Kong's Hang Seng 1.8 percent. Coca-Cola HBC's share price now stands 1.12 percent higher at 2,621.00p.