By Carla Mozee, MarketWatch

Germany's DAX loses 9,000 level

LONDON (MarketWatch) -- European stocks slumped Friday, with geopolitical tensions in Iraq and Russia taking their toll on investors.

The Stoxx Europe 600 dropped 1% to 323.68.

European markets followed Asian declines overnight, coming after U.S. President Barack Obama on Thursday authorized targeted airstrikes and emergency-assistance missions in northern Iraq. Obama said the U.S. must protect American personnel and prevent a humanitarian catastrophe against violent Islamist forces. In Japan, the Nikkei Average sank 3%.

The Stoxx 600 moved toward a 2.5% decline for the week, during which investors fled risk as a trade war escalated between Russia and the West over the Russia's support of separatist forces in Ukraine.

Germany's DAX 30 on Friday lost the 9,000 level, trading down 0.98% at 8,950.40, with investors concerned about the impact of the trade war on Europe's largest economy. The DAX on Thursday lost 1%, marking a 10% fall from its all-time high hit on June 20.

One of the rare risers on the DAX and in Europe was Allianz SE , up 0.8% after the insurer and Pimco parent reported second-quarter profit that topped expectations on Friday.

In Paris, the CAC 40 shed 0.5% to 4,128.74, but Russia's MICEX equity index rose 1.1% to 1,347.24. Bucking the downward trend was the FTSE MIB in Italy, which rose 0.12%, after seeing losses earlier in the week on data showing Italy had slipped back into recession.

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