2017.09.1507:29:00UTC+00European Markets Lower on North Korea Missile; Poised for Best Week

European shares were trading lower on Friday following another missile launch by North Korea which reduced appetite for riskier banking and mining stocks. However, it remains poised for a strong week since July.

The pan-European Stoxx 600 was down 0.04 percent, as most sectors moved lower. Eurozone stocks shed 0.2 percent and Britain's FTSE fell 0.4 percent to a fresh four-month low.

European stocks remain on track for their strongest week in two months, having notched a five-week peak on Thursday as they rebounded from a summer plunge.

According to investors and analysts, attractive valuations pared declines for the region's equities.

Banks were the worst performing group, off by 0.32 percent, with investors discarding riskier assets. Lenders are under pressure as investors pulled back from the most risky assets, as they sought after defensive sectors like utilities and real estate.

Miners tumbled 0.8 percent.

Travel and leisure stocks were also among the worst performers after some downgrades in the sector. Carnival dropped 4.5 percent after Credit Suisse trimmed its price target. The sector could also be slightly weighed down by another knife attack in Paris in the early hours of Friday.

Eurozone stocks have outperformed the wider STOXX index year-to-date despite analysts and investors predicting the stronger euro may reduce company earnings.

Among individual stocks, Dutch postal service PostNL was a top advancer, climbing 3.9 percent after Goldman Sachs upgraded the company to a buy following a recent share price weakness.

Renault were also higher after announcing its alliance would produce 14 pure electric cars and launch a fleet of self-driving taxis by 2022.