Investing.com – European stock markets extended sharp losses from the previous session on Thursday, as worsening fears over Greece's debt woes and the possibility of contagion to other euro-zone countries saw investors shun riskier assets.
During European morning trade, the EURO STOXX 50 slumped 1.05%, France’s CAC 40 tumbled 1.25%, while Germany's DAX 30 fell 0.9%.
Greek Prime Minister George Papandreou said that he will name a new government and call a vote of confidence in Parliament later in the day, as protestors continued to clash with riot police in Athens on Thursday.
The cost of insuring the country’s sovereign debt against default jumped to a euro lifetime high. Portuguese and Irish borrowing costs also hit record highs, while Spanish 10-year government bond yields rose to an 11-year high.
French lenders, three of which were put on review for a possible downgrade by Moody’s on Wednesday, due to their exposure to Greek debt, extended losses from the previous session.
BNP Paribas retreated 1.9%, Societe Generale saw shares tumble 2.5%, while Credit Agricole slumped 1.75%.
Other major European banks, many of which also have exposure to Greek debt were lower, with Unicredit falling 1.45%, Banco Santander sliding 1% and Deutsche Bank retreating 1.1%.
Shares in French retailer Carrefour fell 2.6% after UBS downgraded the stock to ‘sell’, saying there was increased risk around French profits.
In London, the FTSE 100 dropped 1.2% after official data showed that retail sales in the U.K. fell 1.4% in May, worse than expectations for a 0.5% decline.
Grocery chain Tesco saw shares drop 1.1%, while clothing retailer NEXT fell 1%.
Meanwhile, commodity-linked shares performed poorly after oil and metal prices retreated, pressured by a stronger U.S. dollar. Mining giant BHP Billiton saw shares decline 1.25%, rival Rio Tinto slumped 2.1%, while copper producer Xstrata saw shares tumble 2.55%.
The outlook for U.S. equity markets was downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.2%, S&P 500 futures indicated a drop of 0.1%, while the Nasdaq 100 futures shed 0.15%.
Later in the day, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.
During European morning trade, the EURO STOXX 50 slumped 1.05%, France’s CAC 40 tumbled 1.25%, while Germany's DAX 30 fell 0.9%.
Greek Prime Minister George Papandreou said that he will name a new government and call a vote of confidence in Parliament later in the day, as protestors continued to clash with riot police in Athens on Thursday.
The cost of insuring the country’s sovereign debt against default jumped to a euro lifetime high. Portuguese and Irish borrowing costs also hit record highs, while Spanish 10-year government bond yields rose to an 11-year high.
French lenders, three of which were put on review for a possible downgrade by Moody’s on Wednesday, due to their exposure to Greek debt, extended losses from the previous session.
BNP Paribas retreated 1.9%, Societe Generale saw shares tumble 2.5%, while Credit Agricole slumped 1.75%.
Other major European banks, many of which also have exposure to Greek debt were lower, with Unicredit falling 1.45%, Banco Santander sliding 1% and Deutsche Bank retreating 1.1%.
Shares in French retailer Carrefour fell 2.6% after UBS downgraded the stock to ‘sell’, saying there was increased risk around French profits.
In London, the FTSE 100 dropped 1.2% after official data showed that retail sales in the U.K. fell 1.4% in May, worse than expectations for a 0.5% decline.
Grocery chain Tesco saw shares drop 1.1%, while clothing retailer NEXT fell 1%.
Meanwhile, commodity-linked shares performed poorly after oil and metal prices retreated, pressured by a stronger U.S. dollar. Mining giant BHP Billiton saw shares decline 1.25%, rival Rio Tinto slumped 2.1%, while copper producer Xstrata saw shares tumble 2.55%.
The outlook for U.S. equity markets was downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.2%, S&P 500 futures indicated a drop of 0.1%, while the Nasdaq 100 futures shed 0.15%.
Later in the day, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.