LONDON - Stock markets fell Thursday, hit by the decision by US President Donald Trump to call off a planned summit with North Korea, as well as concerns over a new transatlantic trade conflict as the US mulls tariffs on car imports.

While share prices in Frankfurt and Paris had been higher on bargain-hunting earlier in the day, markets ended the day in the red, pulled down by a weaker showing on Wall Street.

London ended the session 0.9 percent lower, Paris slipped by 0.3 percent and Frankfurt shed 0.9 percent.

In New York, the benchmark Dow Jones Industrial Average dropped 0.8 percent after Trump informed Kim Jong Un he was cancelling their nuclear summit next month in Singapore, blaming "anger" and "hostility" from the North Korean regime for the spectacular collapse of the historic event.

The region's bourses had already fallen heavily on Wednesday after Trump said he was not satisfied with talks aimed at averting a trade war with China.

Comments by US Commerce Secretary Wilbur Ross, who said he had initiated an investigation into whether auto imports "are weakening our internal economy and may impair the national security", added to the sour sentiment.

"Shares took a turn for the worse in the afternoon with global geopolitics in the driving seat," said London Capital Group analyst Jasper Lawler.

"It was only when US President doubled down on the political uncertainty by cancelling his planned meeting with North Korea leader Kim Jong Un that European indices turned lower," he said.

Trading was "rather muted... as traders digest the overall impact of a host of geopolitical events, including revival of US-China trade tensions, aggressive North Korea rhetoric and President Trumptaking a swipe at auto equipment makers," agreed Accendo Markets analyst, Artjom Hatsaturjants.

Trump's war on automakers meant the DAX led the losses across Europe with BMW, Daimler, and VW all down in excess of two percent, analysts said.

In London, news that official retail sales unexpectedly rebounded in April, lifted the pound, which in turn weighed on share prices of multinationals listed in London that derive much of their earnings in dollars.

Most major Asian stock markets fell. Japan's Nikkei was the biggest loser, shedding more than one percent as the haven yen surged against the dollar.

New York - Dow: DOWN 0.8 percent at 24,697.91 points

London - FTSE 100: DOWN 0.9 percent at 7,716.74 (close)

Paris - CAC 40: DOWN 0.3 percent at 5,548.45 (close)

Frankfurt - DAX 30: DOWN 0.9 percent at 12,855.09 (close)

EURO STOXX 50: DOWN 0.6 percent at 3,521.76

Tokyo - Nikkei 225: DOWN 1.1 percent at 22,437.01 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 30,760.41 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,154.65 (close)

Euro/dollar: DOWN at $1.1725 from $1.1732

Pound/dollar: FLAT at $1.3376

Dollar/yen: FLAT at 109.21 yen

Oil - Brent North Sea: DOWN 60 cents at $79.20 per barrel

Oil - West Texas Intermediate: DOWN 71 cents at $71.13