Investing.com - European stocks opened lower on Thursday, as concerns over Greece's future in the euro zone re-emerged and as markets eyed the release of inflation and employment reports from Germany later in the day.
During European morning trade, the EURO STOXX 50 fell 0.23%, France’s CAC 40 shed 0.37%, while Germany’s DAX 30 slid 0.32%.
Sentiment weakened after Greece's new government moved Wednesday to roll back deeply unpopular austerity policies underpinning the county’s €240 billion international bailout, fuelling fears over a clash with its international creditors.
Equity markets were also jittery after the Federal Reserve indicated that interest rates could start to rise around mid-year.
Following its policy meeting on Wednesday, the Fed said it would keep rates on hold at least until June and reiterated its pledge to be patient on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) declined 0.80% and 0.88%, while Germany's Commerzbank (XETRA:CBKG) dropped 0.64%.
Deutsche Bank (XETRA:DBKGn) surged 2.73% however, after posting surprise fourth-quarter net profit of €438 million compared with forecasts for a €289 million loss.
Among peripheral lenders, Italy's Intesa Sanpaolo edged up 0.09% slid 0.39%, while Spanish banks BBVA and Banco Santander fell 0.22% and 0.87% respectively.
Elsewhere, Gazprom Oao (MCX:GAZP) saw shares slip 0.14% after the world's top gaz producer said that third-quarter profit dropped 62% due to falling sales and the rouble's recent sharp decline.
In London, commodity-heavy FTSE 100 declined 0.68%, weighed by sharp losses in the energy sector.
Oil and gas major BP (LONDON:BP) plummeted 3.04%, while Royal Dutch Shell A lost 3.71% and Royal Dutch Shell B plunged 3.76%.
Mining stocks were also broadly lower, as Glencore Xstrata (LONDON:GLEN) tumbled 1.17% and Fresnillo (LONDON:FRES) declined 1.32%, while shares in rival company Randgold Resources retreated 1.34%.
Financial stocks added to losses, with Lloyds Banking (LONDON:LLOY) dropped 0.74% and Barclays lost 0.82%, while HSBC Holdings (LONDON:HSBA) and the Royal Bank of Scotland (LONDON:RBS) tumbled 0.83% and 1.81% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.31% increase, S&P 500 futures signaled a 0.23% rise, while the Nasdaq 100 futures indicated a 0.12% gain.
Later in the day, Germany was to release preliminary data on consumer inflation and a report on the change in the number of people unemployed.
The U.S. was to publish the weekly report on initial jobless claims as well as private sector data on pending home sales.