Investing.com - European stocks were lower on Monday, as concerns over the U.S. budget deadlock and a potential sovereign default continued to weigh on market sentiment.
During European morning trade, the EURO STOXX 50 fell 0.28%, France’s CAC 40 retreated 0.50%, while Germany’s DAX 30 slid 0.34%.
Negotiations between U.S. President Barack Obama and House Republicans broke down over the weekend, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. sovereign debt default.
Central bankers and finance ministers in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock.
European Central Bank President Mario Draghi said it was “unthinkable that an agreement won’t be found”.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.50% and 0.94%, while Germany's Deutsche Bank declined 0.50%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA were flat, while Italy's Intesa Sanpaolo and Unicredit overperformed, on the other hand, gaining 0.73% and 0.92%.
Elsewhere, Dassault dove 9.50% after the maker of design software said revenue in the third quarter rose 4%, falling short of targeted growth of 8 to 9%.
On the upside, Paris-based EDF rallied 1.65% as Energy Secretary Ed Davey said the U.K. is “extremely close” to announcing a deal with Europe’s biggest power generator to build Britain’s first nuclear power station since 1995.
In London, FTSE 100 slipped 0.10%, as U.K. lenders tracked their European counterparts lower.
Shares in Barclays retreated 0.52% and HSBC Holdings lost 0.70%, while Lloyds Banking and the Royal Bank of Scotland plummeted 1.18% and 2.05% respectively.
Mining stocks were also on the downside, as Rio Tinto declined 0.34% and BHP Billiton slid 0.41%, while Glencore Xstrata tumbled 1.57%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.66% loss, S&P 500 futures signaled a 0.68% drop, while the Nasdaq 100 futures indicated a 0.44% decline.
Later in the day, the euro zone was to release data on industrial production.
During European morning trade, the EURO STOXX 50 fell 0.28%, France’s CAC 40 retreated 0.50%, while Germany’s DAX 30 slid 0.34%.
Negotiations between U.S. President Barack Obama and House Republicans broke down over the weekend, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. sovereign debt default.
Central bankers and finance ministers in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock.
European Central Bank President Mario Draghi said it was “unthinkable that an agreement won’t be found”.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.50% and 0.94%, while Germany's Deutsche Bank declined 0.50%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA were flat, while Italy's Intesa Sanpaolo and Unicredit overperformed, on the other hand, gaining 0.73% and 0.92%.
Elsewhere, Dassault dove 9.50% after the maker of design software said revenue in the third quarter rose 4%, falling short of targeted growth of 8 to 9%.
On the upside, Paris-based EDF rallied 1.65% as Energy Secretary Ed Davey said the U.K. is “extremely close” to announcing a deal with Europe’s biggest power generator to build Britain’s first nuclear power station since 1995.
In London, FTSE 100 slipped 0.10%, as U.K. lenders tracked their European counterparts lower.
Shares in Barclays retreated 0.52% and HSBC Holdings lost 0.70%, while Lloyds Banking and the Royal Bank of Scotland plummeted 1.18% and 2.05% respectively.
Mining stocks were also on the downside, as Rio Tinto declined 0.34% and BHP Billiton slid 0.41%, while Glencore Xstrata tumbled 1.57%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.66% loss, S&P 500 futures signaled a 0.68% drop, while the Nasdaq 100 futures indicated a 0.44% decline.
Later in the day, the euro zone was to release data on industrial production.