Investing.com – European stock markets were down sharply on Monday, as shares in the financial sector came under pressure amid fears that the euro zone’s sovereign debt crisis is worsening.
During European morning trade, the EURO STOXX 50 tumbled 2.85%, France’s CAC 40 sank 2.75%, while Germany’s DAX 30 plunged 3%.
A meeting of European Union finance ministers in Poland over the weekend failed to produce an agreement on how to resolve the region’s ongoing debt crisis, prompting investors to shun riskier assets.
Fears over a possible Greek debt default also weighed on sentiment as EU ministers warned over the weekend that they may withhold Greece’s next tranche of bailout aid if Athens fails to meet deficit reduction targets.
Shares in French lenders, many of which have high exposure to Greek debt fell sharply, with Societe Generale shares tumbling 5.8% and BNP Paribas dropping 4.3%. In Germany, Deutsche Bank shares slumped 4.3%, while Commerzbank retreated 4.7%.
Swiss lender UBS extended sharp losses from the previous session, falling 1.6% after it raised the estimate of its losses from unauthorized trades to USD2.3 billion from a previously reported USD2 billion.
Meanwhile, French tire maker Michelin tumbled 5.4% after Morgan Stanley downgraded the stock to ‘underweight’ from ‘overweight’, saying the company faces “higher-than-expected risks to earnings from truck markets.”
Elsewhere, in London, the FTSE 100 fell 2.1% as shares in Lloyds Banking Group led losses after it said that Tim Tookey, group finance director and a board member, would step down at the end of February.
Lloyds shares were down 6%, while shares in Barclays slumped 5.6% and Royal Bank of Scotland shares dropped 5%.
Raw material producers also contributed to losses, with mining giants BHP Billiton and Rio Tinto down 3.9% and 4% respectively, while copper producer Xstrata saw shares tumble 4.75%.
Elsewhere, U.S. equity markets pointed to a sharply lower open on Wall Street. The Dow Jones Industrial Average futures pointed to a drop of 1.5%, S&P 500 futures signaled a steep loss of 1.8%, while the Nasdaq 100 futures indicated a 1.5% decline.
Later in the day, officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos to discuss extra steps to ensure Athens can qualify for its next tranche of rescue funds.
During European morning trade, the EURO STOXX 50 tumbled 2.85%, France’s CAC 40 sank 2.75%, while Germany’s DAX 30 plunged 3%.
A meeting of European Union finance ministers in Poland over the weekend failed to produce an agreement on how to resolve the region’s ongoing debt crisis, prompting investors to shun riskier assets.
Fears over a possible Greek debt default also weighed on sentiment as EU ministers warned over the weekend that they may withhold Greece’s next tranche of bailout aid if Athens fails to meet deficit reduction targets.
Shares in French lenders, many of which have high exposure to Greek debt fell sharply, with Societe Generale shares tumbling 5.8% and BNP Paribas dropping 4.3%. In Germany, Deutsche Bank shares slumped 4.3%, while Commerzbank retreated 4.7%.
Swiss lender UBS extended sharp losses from the previous session, falling 1.6% after it raised the estimate of its losses from unauthorized trades to USD2.3 billion from a previously reported USD2 billion.
Meanwhile, French tire maker Michelin tumbled 5.4% after Morgan Stanley downgraded the stock to ‘underweight’ from ‘overweight’, saying the company faces “higher-than-expected risks to earnings from truck markets.”
Elsewhere, in London, the FTSE 100 fell 2.1% as shares in Lloyds Banking Group led losses after it said that Tim Tookey, group finance director and a board member, would step down at the end of February.
Lloyds shares were down 6%, while shares in Barclays slumped 5.6% and Royal Bank of Scotland shares dropped 5%.
Raw material producers also contributed to losses, with mining giants BHP Billiton and Rio Tinto down 3.9% and 4% respectively, while copper producer Xstrata saw shares tumble 4.75%.
Elsewhere, U.S. equity markets pointed to a sharply lower open on Wall Street. The Dow Jones Industrial Average futures pointed to a drop of 1.5%, S&P 500 futures signaled a steep loss of 1.8%, while the Nasdaq 100 futures indicated a 1.5% decline.
Later in the day, officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos to discuss extra steps to ensure Athens can qualify for its next tranche of rescue funds.