Global markets have lost almost US$1 trillion since United States president Donald Trump said on Tuesday that North Korea "will be met with fire and fury like the world has never seen" and then dialed up his warning further on Thursday by saying he wasn't tough enough this week.
"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.
After crashing through 12100, we had expected some kind of psychological support around the round figure of 12000 but even that was not forthcoming as the index continued to drop and it closed the day below 12000 and it looks primed for further losses.
USA markets held steady in trade on Friday, with the Dow Jones up 0.2%.
Housebuilders Persimmon and Barratt Developments were among the biggest gainers of the day, up 1.58% and 1.02% respectively.
In economic news, German consumer inflation grew an annual 1.7 percent in July, slightly faster than the 1.6 percent increase registered in June, final data from Destatis showed. It is expected to be issued at 8:30 a.m. ET (GMT).
The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment. "Should we see another dip in inflation in July, it could make the job of building a consensus for another rate hike this year more hard".
The Nasdaq Composite was up 19.35 points, or 0.31 percent, at 6,236.22. Wall Street was poised for a soft opening with S&P futures and Dow futures both down 0.2 percent.
Shares of Snap were off about 15 percent premarket following the social media company's earnings that came below estimates and a slew of price target cuts.
Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 3.90 percent.
J.C. Penney slumped 16.56 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.
Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts.