Investing.com - European stocks closed sharply lower Monday ahead of Tuesday's U.S. Presidential election and disappointing Spanish economic data added to concerns over the country's financial woes.
At the close of European trade, the EURO STOXX 50 declined 1.16%, France’s CAC 40 slid 1.26%, while Germany’s DAX 30 dropped 0.51%.
Equity sentiment came under pressure after Spain's Employment Ministry said the number of unemployed people rose by a seasonally adjusted 128,200 in October, above expectations for an increase of 90,500.
The number of unemployed people in Spain rose by an unrevised 79,600 in September.
Meanwhile, markets were jittery amid uncertainty over the outcome of Tuesday’s U.S. presidential elections, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.
Financial stocks remained broadly lower, as shares in French lenders BNP Paribas and Societe Generale dropped 0.49% and 1.65%, while Germany's Deutsche Bank and Commerzbank tumbled 1.32% and 0.92% respectively.
Peripheral lenders added to losses, with Italian banks Unicredit and Intesa Sanpaolo sliding 1.48% and 1.98%, while Spain's BBVA and Banco Santander plummeted 2.18% and 1.78% respectively.
Elsewhere, CGGVeritas plunged 2,49%, extending earlier losses, after the company reported third-quarter net profit of USD48 million, missing analyst estimates for a profit of USD68 million.
Siemens was also on the downside, with shares dropping 0.29% after Financial Times Deutschland reported that the company may have to write down another EUR250 million from the exit of its solar business.
In London, FTSE 100 retreated 0.50%, as U.K. lenders tracked their European counterparts lower, while data showed that the U.K. service sector grew at the slowest pace in nearly two years in October.
Shares in Barclays plummeted 1.42% and the Royal Bank of Scotland tumbled 1.39%, while HSBC Holdings and Lloyds Banking Group plunged 1.40% and 1.52%.
Mining giants Rio Tinto and BHP Billiton also posted sharp losses, as shares plummeted 2.02% and 1.36%, while copper producers Xstrata and Kazakhmys lost 0.08% and 2.18% respectively.
On the upside, Ryanair surged 6.43% after reporting a 23% rise in second-quarter net profit to EUR496.8 million. The company previously forecast profit would shrink to between EUR400 million and EUR440 million euros.
Pressuring U.S. shares, service sector activity in the U.S. grew at a slower rate than expected in October, but still expanded for the 34th consecutive month, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.2 in October from a reading of 55.1 in September.
Analysts had expected the index to decline to 54.5 in October.
In the U.S., equity markets followed lower with the Dow Jones down 0.22%, the broad based S&P 500 off 0.17% and the tech heavy Nasdaq lower by 0.05%
Investors are awaiting the U.S. Presidential Election and German factory orders on Tuesday.
At the close of European trade, the EURO STOXX 50 declined 1.16%, France’s CAC 40 slid 1.26%, while Germany’s DAX 30 dropped 0.51%.
Equity sentiment came under pressure after Spain's Employment Ministry said the number of unemployed people rose by a seasonally adjusted 128,200 in October, above expectations for an increase of 90,500.
The number of unemployed people in Spain rose by an unrevised 79,600 in September.
Meanwhile, markets were jittery amid uncertainty over the outcome of Tuesday’s U.S. presidential elections, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.
Financial stocks remained broadly lower, as shares in French lenders BNP Paribas and Societe Generale dropped 0.49% and 1.65%, while Germany's Deutsche Bank and Commerzbank tumbled 1.32% and 0.92% respectively.
Peripheral lenders added to losses, with Italian banks Unicredit and Intesa Sanpaolo sliding 1.48% and 1.98%, while Spain's BBVA and Banco Santander plummeted 2.18% and 1.78% respectively.
Elsewhere, CGGVeritas plunged 2,49%, extending earlier losses, after the company reported third-quarter net profit of USD48 million, missing analyst estimates for a profit of USD68 million.
Siemens was also on the downside, with shares dropping 0.29% after Financial Times Deutschland reported that the company may have to write down another EUR250 million from the exit of its solar business.
In London, FTSE 100 retreated 0.50%, as U.K. lenders tracked their European counterparts lower, while data showed that the U.K. service sector grew at the slowest pace in nearly two years in October.
Shares in Barclays plummeted 1.42% and the Royal Bank of Scotland tumbled 1.39%, while HSBC Holdings and Lloyds Banking Group plunged 1.40% and 1.52%.
Mining giants Rio Tinto and BHP Billiton also posted sharp losses, as shares plummeted 2.02% and 1.36%, while copper producers Xstrata and Kazakhmys lost 0.08% and 2.18% respectively.
On the upside, Ryanair surged 6.43% after reporting a 23% rise in second-quarter net profit to EUR496.8 million. The company previously forecast profit would shrink to between EUR400 million and EUR440 million euros.
Pressuring U.S. shares, service sector activity in the U.S. grew at a slower rate than expected in October, but still expanded for the 34th consecutive month, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.2 in October from a reading of 55.1 in September.
Analysts had expected the index to decline to 54.5 in October.
In the U.S., equity markets followed lower with the Dow Jones down 0.22%, the broad based S&P 500 off 0.17% and the tech heavy Nasdaq lower by 0.05%
Investors are awaiting the U.S. Presidential Election and German factory orders on Tuesday.