European shares dip on Friday as another missile launch by North Korea dents investor appetite for riskier stocks, but the index remained on track for its strongest week since July. Laura Frykberg reports.
Warning sirens on the eastern coast of Japan, after another North Korean missile launch. Alarm residents may have felt though, not, it seems, doing the same to markets. The pan-European dipped 0.2 percent, while Britain's FTSE dropped 0.4. (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "We've had those scares now repeatedly. So the market is becoming, shall we say, not quite complacent, but it is shrugging it off." It's been a strong week for European stocks, heading for their best results in two months. On Thursday, shares were at a five-week high. But good things like such a rally, potentially, will end, eventually. (SOUNDBITE) (English) DARREN SINDEN, MARKET ANALYST, PEPPERSTONE, SAYING: "There are risks on the horizon, yet none of them really have been crystallise or come to pass and so people can afford to still stay long equities relatively long equities and in the hopes of you know a little bit more to come." Case in point perhaps, higher than expected inflation in the US out on Thursday. The CPI's 0.4 percent gain in August was its biggest in seven months, boosting the odds of another interest rate hike this year. But the Dow Jones Industrial Average finishing the day at a record high even so.