Investing.com - European stocks were lower on Tuesday, as discussions on financial aid to banks by the euro zone's bailout fund, the European Stability Mechanism, weighed on market sentiment.
During European morning trade, the EURO STOXX 50 dropped 0.88%, France’s CAC 40 declined 0.78%, while Germany’s DAX 30 tumbled 1.37%.
Sentiment improved earlier, after the eurogroup of euro zone finance ministers gave the green light on Monday for the payout of EUR9.2 billion to Greece this month, indicating greater confidence in Athens' ability to press ahead with initiatives outlined in the nation’s international aid program.
But investors remained cautious as euro zone ministers were still seeking an agreement on how and when the EUR500 billion ESM can bypass governments and provide direct help to banks.
Ireland and France led calls on Monday for work to proceed quickly, while other nations countered that direct bank aid shouldn’t start until the European Central Bank takes up its new role as single supervisor within the single currency bloc, which isn’t expected until 2014.
Financial stocks were broadly lower, as shares in French lenders Societe Generale and BNP Paribas declined 0.22% and 0.93%, while Germany's Deutsche Bank and Commerzbank tumbled 2.56% and 0.77% respectively.
Peripheral lenders also posted sharp losses, with Italian banks Unicredit and Intesa Sanpaolo dropping 0.94% and 1.73%, while Spain's Banco Santander and BBVA retreated 0.62% and 1.15%.
Elsewhere, Vivendi plummeted 2% after SFR, the French phone unit of Europe’s biggest media and telecommunications company, said it expects a tough market for as long as 18 months.
On the upside, Siemens climbed 0.95% after announcing that first-quarter profit was about EUR1.3 billion, close to the previous year’s level.
In London, commodity-heavy FTSE 100 fell 0.33%, weighed by losses in oil and mining stocks.
Oil and gas major Anglo American saw shares plunge 1.30%, while rival BP retreated 0.45%.
Mining giants BHP Billiton and Rio Tinto were also on the downside, sliding 0.82% and 1.58%, while copper producers Xstrata and Kazakhmys dropped 0.65% and 1.35% respectively.
Meanwhile, U.K. lenders tracked their European counterparts lower. HSBC Holdings edged 0.12% lower and Barclays declined 0.56%, while Lloyds Banking and the Royal Bank of Scotland plummeted 0.85% and 1.79%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures signaled a 0.19% loss, while the Nasdaq 100 futures indicated a 0.20% decline.
Later in the day, the euro group of finance ministers was to hold a second day of talks in Brussels, while the ZEW Institute was to release its closely watched index of German economic sentiment.
The U.S. was to publish private sector data on existing home sales. In addition, the World Economic Forum was to begin its annual meeting in Davos, Switzerland.
During European morning trade, the EURO STOXX 50 dropped 0.88%, France’s CAC 40 declined 0.78%, while Germany’s DAX 30 tumbled 1.37%.
Sentiment improved earlier, after the eurogroup of euro zone finance ministers gave the green light on Monday for the payout of EUR9.2 billion to Greece this month, indicating greater confidence in Athens' ability to press ahead with initiatives outlined in the nation’s international aid program.
But investors remained cautious as euro zone ministers were still seeking an agreement on how and when the EUR500 billion ESM can bypass governments and provide direct help to banks.
Ireland and France led calls on Monday for work to proceed quickly, while other nations countered that direct bank aid shouldn’t start until the European Central Bank takes up its new role as single supervisor within the single currency bloc, which isn’t expected until 2014.
Financial stocks were broadly lower, as shares in French lenders Societe Generale and BNP Paribas declined 0.22% and 0.93%, while Germany's Deutsche Bank and Commerzbank tumbled 2.56% and 0.77% respectively.
Peripheral lenders also posted sharp losses, with Italian banks Unicredit and Intesa Sanpaolo dropping 0.94% and 1.73%, while Spain's Banco Santander and BBVA retreated 0.62% and 1.15%.
Elsewhere, Vivendi plummeted 2% after SFR, the French phone unit of Europe’s biggest media and telecommunications company, said it expects a tough market for as long as 18 months.
On the upside, Siemens climbed 0.95% after announcing that first-quarter profit was about EUR1.3 billion, close to the previous year’s level.
In London, commodity-heavy FTSE 100 fell 0.33%, weighed by losses in oil and mining stocks.
Oil and gas major Anglo American saw shares plunge 1.30%, while rival BP retreated 0.45%.
Mining giants BHP Billiton and Rio Tinto were also on the downside, sliding 0.82% and 1.58%, while copper producers Xstrata and Kazakhmys dropped 0.65% and 1.35% respectively.
Meanwhile, U.K. lenders tracked their European counterparts lower. HSBC Holdings edged 0.12% lower and Barclays declined 0.56%, while Lloyds Banking and the Royal Bank of Scotland plummeted 0.85% and 1.79%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures signaled a 0.19% loss, while the Nasdaq 100 futures indicated a 0.20% decline.
Later in the day, the euro group of finance ministers was to hold a second day of talks in Brussels, while the ZEW Institute was to release its closely watched index of German economic sentiment.
The U.S. was to publish private sector data on existing home sales. In addition, the World Economic Forum was to begin its annual meeting in Davos, Switzerland.