Jitters about Iraq have unsettled global equity markets but are unlikely to lead to the deeper market correction anticipated for some time, analysts tell CNBC.
Wall Street shares closed broadly lower overnight, with the S&P 500 moving further away from this week's record highs. In Asia, Japan's benchmark Nikkei opened down almost 1 percent on Friday amid escalating violence in Iraq.
"It [Iraq violence] certainly has an outside potential [to hurt markets] but right now you have to view this as just noise," said Robert Pavlik, chief market strategist at investment firm Banyan Partners.
"This situation is just raising overall geopolitical concern. Oil traders will push oil up and we could get to $112 but at that level it doesn't derail anything," he added.
In Iraq this week, Sunni Islamist militants have extended their march south towards the capital Baghdad prompting U.S. President Barack Obama to warn of possible military intervention. Iraqi Kurdish forces meanwhile have taken control of the oil hub of Kirkuk amid the chaos.