European stocks slide on geopolitical tensions

LONDON: European and US stock markets fell on Wednesday with sentiment dented by heightened geopolitical worries, dealers said.

While both sides have sought to play down the threat of war, the rare aerial engagement over the divided and disputed territory of Kashmir significantly raises the stakes in a standoff sparked by a suicide attack on the Indian-controlled side earlier this month. "Equity markets are in the red ... as geopolitics is playing on traders' minds," said CMC Markets analyst David Madden.

On currency markets, hopes that Britain will not leave the European Union without a divorce pact in place provided more support to the pound.

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