Investing.com – European stock markets were broadly lower on Tuesday, as shares in the financial sector led losses after Moody’s downgraded Portugal’s debt, while U.S. futures indexes pointed to a lower open on Wall Street.
During European morning trade, the EURO STOXX 50 slumped 0.55%, France’s CAC 40 dropped 0.6%, while Germany's DAX 30 shed 0.35%.
Earlier in the day, Moody's Investors Service downgraded Portugal's sovereign debt by one notch to Baa1, citing fears the country would have difficulty meeting its deficit-reduction goals. The news added to mounting concerns Portugal would have to seek outside help to resolve its debt problems.
Shares in Spain’s largest lender Banco Santander dropped 1.5%, Deutsche Bank saw shares slip 1.3%, while shares in Societe Generale sank 2.85%.
Meanwhile, shares in the airline sector were broadly lower on concerns that higher fuel costs would weigh on profits as oil prices hovered near a 30-month high. Europe’s largest airliner Deutsche Lufthansa saw shares drop 1.45%, shares in Air France-KLM fell 1.1%, while shares in British Airways declined 1.75%.
However, shares in Europe’s largest chip manufacturer STMicroelectronics jumped 2.85%, boosted by news late Monday that chip giant Texas Instruments agreed to acquire rival National Semiconductor for approximately USD6.5 billion.
Europe’s second largest chip maker Infineon climbed 2.25%, while ARM Holdings added 1.55%.
In London, the FTSE 100 shed 0.4%, as shares in banking giant Barclays slumped 2.45% after the Financial Times reported that the bank’s internal forecasts indicated a key measure of profitability would decline or hold flat this year. Shares in rival Royal Bank of Scotland fell 1.05%, while Lloyds Banking Group dropped 1.5%.
Meanwhile, shares in TUI Travel jumped 4.6% after reports that an Omani state-owned fund has taken a 15% stake in German container-shipping company Hapag-Lloyd, of which TUI also holds nearly 50%.
The outlook for U.S. equity markets, meanwhile, was downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.05%, S&P 500 futures indicated a drop 0.29%, while the Nasdaq 100 futures slumped 0.75%.
Later in the day, the U.S. was to publish data on service sector growth while the Fed was to publish the minutes of its most recent policy setting meeting.
During European morning trade, the EURO STOXX 50 slumped 0.55%, France’s CAC 40 dropped 0.6%, while Germany's DAX 30 shed 0.35%.
Earlier in the day, Moody's Investors Service downgraded Portugal's sovereign debt by one notch to Baa1, citing fears the country would have difficulty meeting its deficit-reduction goals. The news added to mounting concerns Portugal would have to seek outside help to resolve its debt problems.
Shares in Spain’s largest lender Banco Santander dropped 1.5%, Deutsche Bank saw shares slip 1.3%, while shares in Societe Generale sank 2.85%.
Meanwhile, shares in the airline sector were broadly lower on concerns that higher fuel costs would weigh on profits as oil prices hovered near a 30-month high. Europe’s largest airliner Deutsche Lufthansa saw shares drop 1.45%, shares in Air France-KLM fell 1.1%, while shares in British Airways declined 1.75%.
However, shares in Europe’s largest chip manufacturer STMicroelectronics jumped 2.85%, boosted by news late Monday that chip giant Texas Instruments agreed to acquire rival National Semiconductor for approximately USD6.5 billion.
Europe’s second largest chip maker Infineon climbed 2.25%, while ARM Holdings added 1.55%.
In London, the FTSE 100 shed 0.4%, as shares in banking giant Barclays slumped 2.45% after the Financial Times reported that the bank’s internal forecasts indicated a key measure of profitability would decline or hold flat this year. Shares in rival Royal Bank of Scotland fell 1.05%, while Lloyds Banking Group dropped 1.5%.
Meanwhile, shares in TUI Travel jumped 4.6% after reports that an Omani state-owned fund has taken a 15% stake in German container-shipping company Hapag-Lloyd, of which TUI also holds nearly 50%.
The outlook for U.S. equity markets, meanwhile, was downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.05%, S&P 500 futures indicated a drop 0.29%, while the Nasdaq 100 futures slumped 0.75%.
Later in the day, the U.S. was to publish data on service sector growth while the Fed was to publish the minutes of its most recent policy setting meeting.