Investing.com - European stock markets were sharply lower on Monday, as Greece’s political turmoil and growing speculation over a potential Greek exit from the euro zone continued to weigh on investor confidence.
During European morning trade, the EURO STOXX 50 tumbled 2.09%, France’s CAC 40 plunged 1.96%, while Germany’s DAX 30 declined 1.64%.
Greece's party leaders failed on Sunday to bridge differences in a marathon effort to form a coalition government, spurring the president to call a last-ditch meeting for Monday in an attempt to break a week-long political impasse amid fears the country may be forced out of the euro zone.
A new round of elections seemed the most likely however as radical left Syriza party declined to participate in Monday's talks.
Adding to concerns, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
Financial stocks were broadly hit, as shares in Dutch lender led losses with shares plunging 3.71% after a weekend report said its rescue by the country’s government will be re-examined by European Union competition regulators after a court overturned earlier approval of the aid.
France’s BNP Paribas and Societe Generale were also sharply lower, tumbling 3.70% and 3.14% respectively, while German Deutsche Bank and Commerzbank dropped 2.45% and 1.41%.
On the upside, shares in Holcim, the world’s second-biggest cement maker, rose 0.85% after Chief Executive Officer Bernard Fontana unveiled a planned increase of CHF1.5 billion in operating profit by the end of 2014 by streamlining the purchasing of raw-materials and improving cement factory efficiency.
In London, FTSE 100 plummeted 1.38%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in Barclays dove 5.06% and the Royal Bank of Scotland plunged 4.05%, while Lloyds Banking and HSBC Holdings saw shares sink 3.46% and 2.07%.
Mining giants Rio Tinto and Bhp Billiton also contributed to losses, with shares tumbling 1.62% and 2.52% respectively, as did copper producers Xstrata and Kazakhmys, down 2.52% and 2.75%.
Meanwhile, Rank Group Plc, the U.K. casino and bingo company, climbed 2.27% after it conditionally agreed to buy the casino unit of Gala Coral Group Ltd. for GBP205 million.
Invensys Plc, the British maker of controls for washing machines and factory equipment, also surged 4.79% after the Sunday Times said the company is the target for potential bids from industrial groups including Siemens AG, ABB Ltd., Emerson Electric Co. and General Electric Co.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to fall of 0.54%, S&P 500 futures signaled a 0.63% decline, while the Nasdaq 100 futures indicated a 0.56% loss.
Later in the day, the euro zone was to release official data on industrial production, while Italy was to hold an auction of 10-year government bonds. In addition, European Union finance ministers were to hold talks in Brussels.
During European morning trade, the EURO STOXX 50 tumbled 2.09%, France’s CAC 40 plunged 1.96%, while Germany’s DAX 30 declined 1.64%.
Greece's party leaders failed on Sunday to bridge differences in a marathon effort to form a coalition government, spurring the president to call a last-ditch meeting for Monday in an attempt to break a week-long political impasse amid fears the country may be forced out of the euro zone.
A new round of elections seemed the most likely however as radical left Syriza party declined to participate in Monday's talks.
Adding to concerns, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
Financial stocks were broadly hit, as shares in Dutch lender led losses with shares plunging 3.71% after a weekend report said its rescue by the country’s government will be re-examined by European Union competition regulators after a court overturned earlier approval of the aid.
France’s BNP Paribas and Societe Generale were also sharply lower, tumbling 3.70% and 3.14% respectively, while German Deutsche Bank and Commerzbank dropped 2.45% and 1.41%.
On the upside, shares in Holcim, the world’s second-biggest cement maker, rose 0.85% after Chief Executive Officer Bernard Fontana unveiled a planned increase of CHF1.5 billion in operating profit by the end of 2014 by streamlining the purchasing of raw-materials and improving cement factory efficiency.
In London, FTSE 100 plummeted 1.38%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in Barclays dove 5.06% and the Royal Bank of Scotland plunged 4.05%, while Lloyds Banking and HSBC Holdings saw shares sink 3.46% and 2.07%.
Mining giants Rio Tinto and Bhp Billiton also contributed to losses, with shares tumbling 1.62% and 2.52% respectively, as did copper producers Xstrata and Kazakhmys, down 2.52% and 2.75%.
Meanwhile, Rank Group Plc, the U.K. casino and bingo company, climbed 2.27% after it conditionally agreed to buy the casino unit of Gala Coral Group Ltd. for GBP205 million.
Invensys Plc, the British maker of controls for washing machines and factory equipment, also surged 4.79% after the Sunday Times said the company is the target for potential bids from industrial groups including Siemens AG, ABB Ltd., Emerson Electric Co. and General Electric Co.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to fall of 0.54%, S&P 500 futures signaled a 0.63% decline, while the Nasdaq 100 futures indicated a 0.56% loss.
Later in the day, the euro zone was to release official data on industrial production, while Italy was to hold an auction of 10-year government bonds. In addition, European Union finance ministers were to hold talks in Brussels.