Investing.com – European stock markets were broadly lower on Thursday, as market sentiment was weighed after Japan’s sovereign debt rating was cut, while U.S. futures indexes pointed to a lower open on Wall Street.
During European morning trade, the EURO STOXX 50 slumped 0.31%, France’s CAC 40 shed 0.24%, while Germany's DAX was up 0.09%.
Earlier in the day, ratings agency Standard & Poor’s cut Japan’s sovereign debt rating to AA- from AA, warning that the country’s fiscal deficits would remain high in the next few years.
Shares in the financial sector performed poorly following the news. Europe’s largest banking group BNP Paribas saw shares drop 1.22%, shares in rival Societe Generale sank 1.09%, while Spain’s biggest lender Banco Santander saw shares dip 1.33%.
Meanwhile, shares in Europe’s second largest fashion retailer H&M tumbled 6.21% after it reported an 11% drop in fourth quarter profit, as rising cotton prices and the euro’s weakness weighed on results.
Shares in Swiss healthcare group Novartis slumped 1.56% after it said that fourth net profit fell by 6% to EUR1.58 billion, falling short of market expectations for profit of EUR1.72 billion.
Elsewhere, shares in the operator of the Frankfurt stock exchange Deutsche Boerse saw shares plunge 2.03% after the stock was downgraded by Nomura Holdings.
In London, the FTSE 100 was down 0.21% as losses in the financial sector outweighed gains in miners.
Shares in the third largest U.K. lender Barclays tumbled 1.38%, rival Lloyds Banking Group saw shares slump 1.42%, while shares in Royal Bank of Scotland lost 1.31%.
Meanwhile, shares in the world’s largest mining group BHP Billiton climbed 0.93%, rival Rio Tinto saw shares gain 1.04%, while copper producer Xstrata saw shares jump 0.97%.
The outlook for U.S. equity markets, meanwhile, was modestly downbeat ahead of earnings reports from industrial machinery maker Caterpillar and from the world’s largest online retailer Amazon.
The Dow Jones Industrial Average futures pointed to a loss of 0.03%, S&P 500 futures indicated a drop of 0.08%, while the Nasdaq 100 futures pointed to a decline of 0.03%.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.
During European morning trade, the EURO STOXX 50 slumped 0.31%, France’s CAC 40 shed 0.24%, while Germany's DAX was up 0.09%.
Earlier in the day, ratings agency Standard & Poor’s cut Japan’s sovereign debt rating to AA- from AA, warning that the country’s fiscal deficits would remain high in the next few years.
Shares in the financial sector performed poorly following the news. Europe’s largest banking group BNP Paribas saw shares drop 1.22%, shares in rival Societe Generale sank 1.09%, while Spain’s biggest lender Banco Santander saw shares dip 1.33%.
Meanwhile, shares in Europe’s second largest fashion retailer H&M tumbled 6.21% after it reported an 11% drop in fourth quarter profit, as rising cotton prices and the euro’s weakness weighed on results.
Shares in Swiss healthcare group Novartis slumped 1.56% after it said that fourth net profit fell by 6% to EUR1.58 billion, falling short of market expectations for profit of EUR1.72 billion.
Elsewhere, shares in the operator of the Frankfurt stock exchange Deutsche Boerse saw shares plunge 2.03% after the stock was downgraded by Nomura Holdings.
In London, the FTSE 100 was down 0.21% as losses in the financial sector outweighed gains in miners.
Shares in the third largest U.K. lender Barclays tumbled 1.38%, rival Lloyds Banking Group saw shares slump 1.42%, while shares in Royal Bank of Scotland lost 1.31%.
Meanwhile, shares in the world’s largest mining group BHP Billiton climbed 0.93%, rival Rio Tinto saw shares gain 1.04%, while copper producer Xstrata saw shares jump 0.97%.
The outlook for U.S. equity markets, meanwhile, was modestly downbeat ahead of earnings reports from industrial machinery maker Caterpillar and from the world’s largest online retailer Amazon.
The Dow Jones Industrial Average futures pointed to a loss of 0.03%, S&P 500 futures indicated a drop of 0.08%, while the Nasdaq 100 futures pointed to a decline of 0.03%.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.