Investing.com - European stocks declined on Monday, as concerns over Spain's financial woes resurfaced, although market sentiment remained supported after the Federal Reserve announced a new round of quantitative easing last week.
During European morning trade, the EURO STOXX 50 dropped 0.35%, France’s CAC 40 slumped 0.35%, while Germany’s DAX 30 fell 0.13%.
Investor confidence weakened after European Central Bank policymaker Ewald Nowotny reminded Spain that it needs to apply for a rescue package to qualify for the central bank’s bond-buying program.
Reuters reported earlier that Spanish Prime Minister Mariano Rajoy is looking to delay any request for aid, preferring an alternative strategy if possible, and that the government will unveil a further economic reform package late September.
But sentiment remained supported after the Fed announced last week that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
Financial stocks were mixed, as shares in French lenders BNP Paribas and Societe Generale advanced 0.65% and 0.44%, while Germany's Deutsche Bank and Commerzbank declined 0.62% and 0.13% respectively.
Spanish banks contributed to losses as protestors took to the streets in Spain over the weekend to protest against public spending cuts. Banco Santander saw shares tumble 1.75% and BBVA plunged 1.65% in early European trade.
Elsewhere, commodity-linked stocks were also broadly lower, as steelmaker SSAB dove 9.39% after saying that demand for strip products has been much weaker than expected in the third quarter and warned that falling iron ore prices will hurt earnings in the first quarter of next year.
ThyssenKrupp, Germany’s biggest steelmaker, also lost 2.56% as UBS AG downgraded the stock to sell from neutral, while France-based ArcelorMittal plummeted 2.76%
In London, commodity-heavy FTSE 100 slipped 0.11%, weighed by sharp losses in mining stocks.
Mining giants Rio Tinto and BHP Billiton slumped 1.19% and 0.84% respectively, while steel manufacturer Evraz tumbled 2.14%.
Copper producers Xstrata and Kazakhmys were also on the downside, with shares retreating 0.05% and 0.75%, while oil major Anglo American declined 1.08%.
Elsewhere, U.K. lenders were mixed, as shares in HSBC Holdings fell 0.18% and the Royal Bank of Scotland edged down 0.15%, while Barclays dipped 0.03% and Lloyds Banking gained 0.90%.
Meanwhile, mobile-phone operator Vodafone dropped 0.91% after CEO Andy Halford said in an interview the company may make a provision to cover legal risks relating to a USD2.2 billion tax bill in India.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.21% fall, S&P 500 futures signaled a 0.23% decline, while the Nasdaq 100 futures indicated a 0.23% loss.
Later in the day, the euro zone was to produce official data on the current account, while the U.S. was to publish an index of manufacturing activity in the New York area.
During European morning trade, the EURO STOXX 50 dropped 0.35%, France’s CAC 40 slumped 0.35%, while Germany’s DAX 30 fell 0.13%.
Investor confidence weakened after European Central Bank policymaker Ewald Nowotny reminded Spain that it needs to apply for a rescue package to qualify for the central bank’s bond-buying program.
Reuters reported earlier that Spanish Prime Minister Mariano Rajoy is looking to delay any request for aid, preferring an alternative strategy if possible, and that the government will unveil a further economic reform package late September.
But sentiment remained supported after the Fed announced last week that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
Financial stocks were mixed, as shares in French lenders BNP Paribas and Societe Generale advanced 0.65% and 0.44%, while Germany's Deutsche Bank and Commerzbank declined 0.62% and 0.13% respectively.
Spanish banks contributed to losses as protestors took to the streets in Spain over the weekend to protest against public spending cuts. Banco Santander saw shares tumble 1.75% and BBVA plunged 1.65% in early European trade.
Elsewhere, commodity-linked stocks were also broadly lower, as steelmaker SSAB dove 9.39% after saying that demand for strip products has been much weaker than expected in the third quarter and warned that falling iron ore prices will hurt earnings in the first quarter of next year.
ThyssenKrupp, Germany’s biggest steelmaker, also lost 2.56% as UBS AG downgraded the stock to sell from neutral, while France-based ArcelorMittal plummeted 2.76%
In London, commodity-heavy FTSE 100 slipped 0.11%, weighed by sharp losses in mining stocks.
Mining giants Rio Tinto and BHP Billiton slumped 1.19% and 0.84% respectively, while steel manufacturer Evraz tumbled 2.14%.
Copper producers Xstrata and Kazakhmys were also on the downside, with shares retreating 0.05% and 0.75%, while oil major Anglo American declined 1.08%.
Elsewhere, U.K. lenders were mixed, as shares in HSBC Holdings fell 0.18% and the Royal Bank of Scotland edged down 0.15%, while Barclays dipped 0.03% and Lloyds Banking gained 0.90%.
Meanwhile, mobile-phone operator Vodafone dropped 0.91% after CEO Andy Halford said in an interview the company may make a provision to cover legal risks relating to a USD2.2 billion tax bill in India.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.21% fall, S&P 500 futures signaled a 0.23% decline, while the Nasdaq 100 futures indicated a 0.23% loss.
Later in the day, the euro zone was to produce official data on the current account, while the U.S. was to publish an index of manufacturing activity in the New York area.