Investing.com - European stocks declined on Tuesday, as fears of a possible Greek exit from the euro zone continued to dominate market sentiment.
During European morning trade, the EURO STOXX 50 edged down 0.16%, France’s CAC 40 fell 0.19%, while Germany’s DAX 30 slid 0.29%.
Investors remained cautious amid concerns over Greece’s future in the euro zone as negotiations with the European Union over the country's debt and bailout continued.
Greek Prime Minister Alexis Tsipras has said he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension. Instead, he is seeking a new agreement to cover Greece’s funding needs until June.
Earlier Tuesday, official data showed that French industrial production rose 1.5% in December, beating expectations for a 0.4% gain. November's figure was revised to a 0.2% slip from a previously estimated 0.3% fall.
Financial stocks were mixed, as BNP Paribas gained 0.47% and Societe Generale slipped 0.10% in France, while Deutsche Bank declined 0.44% and Commerzbank advanced 0.59% in Germany.
Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo rose 0.09% and 1.29% respectively, while Spanish banks Banco Santander and BBVA edged up 0.10% and 0.36%.
Elsewhere, Michelin plunged 4.18% after the French tiremaker reported earnings for last year below analysts' estimates due to weaker demand and currency hurdles.
On the upside, SAAB (ST:SAABBs) climbed 0.40% after the Swedish aerospace and defense company said revenue this year will probably increase more than 5%, boosted by a rise in military spending among its main customers in Europe.
In London, FTSE 100 retreated 0.40%, weighed by losses in the financial sector.
Shares in the Royal Bank of Scotland edged down 0.08% and Lloyds Banking slipped 0.25%, while Barclays dropped 0.83% and HSBC Holdings tumbled 1.49%.
HSBC continued to make headlines following reports on Monday that its private bank in Switzerland helped clients evade millions of dollars worth of taxes and offered deals to help them stay ahead of the law.
Mining stocks were also on the downside, with Rio Tinto and Bhp Billiton down 0.26% and 0.36% respectively, while Fresnillo declined 0.67% and Randgold Resources lost 1.29%.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.08% gain, S&P 500 futures signaled a 0.10% rise, while the Nasdaq 100 futures indicated a 0.12% increase.