Investing.com - European stocks opened lower on Friday, after disappointing German economic data and as concerns the U.S. will not be able to avoid a fiscal crisis weighed on market sentiment.
During European morning trade, the EURO STOXX 50 declined 0.31%, France’s CAC 40 fell 0.12%, while Germany’s DAX 30 dropped 0.34%.
Research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
Meanwhile, investors remained cautious after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Although U.S. financial markets were to open Friday, the U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale dropped 0.65% and 0.88%, while Germany's Deutsche Bank and Commerzbank retreated 0.86% and 0.94%.
Peripheral lenders added to losses, with Italian bank Unicredit dropping 0.57%, while Spain's BBVA and Banco Santander fell 0.14% and 0.33%.
Elsewhere, French steelmaker ArcelorMittal plunged 2.80% after saying it will write down the goodwill in its European businesses by about USD4.3 billion, due to declining demand.
In London, commodity-heavy FTSE 100 fell 0.28%, weighed by losses in oil and mining stocks.
Mining giants Rio Tinto and BHP Billiton declined 0.41% and 0.72%, while Eurasian Natural Resources ans Xstrata tumbled 1.85% and 0.50% respectively.
Oil and gas major Anglo American was also on the downside, with shares tumbling 1.02%, while rival BP dropped 0.52%.
Meanwhile, U.K. lenders tracked their European counterparts lower. Lloyds Banking edged 0.16% lower and HSBC Holdings declined 0.55%, while the Royal Bank of Scotland and Barclays plummeted 0.55% and 1.06%.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 1.14% decline, S&P 500 futures signaled a 1.15% drop, while the Nasdaq 100 futures indicated a 1.17% loss.
Later in the day, the U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as government data on personal income and spending.
During European morning trade, the EURO STOXX 50 declined 0.31%, France’s CAC 40 fell 0.12%, while Germany’s DAX 30 dropped 0.34%.
Research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
Meanwhile, investors remained cautious after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Although U.S. financial markets were to open Friday, the U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale dropped 0.65% and 0.88%, while Germany's Deutsche Bank and Commerzbank retreated 0.86% and 0.94%.
Peripheral lenders added to losses, with Italian bank Unicredit dropping 0.57%, while Spain's BBVA and Banco Santander fell 0.14% and 0.33%.
Elsewhere, French steelmaker ArcelorMittal plunged 2.80% after saying it will write down the goodwill in its European businesses by about USD4.3 billion, due to declining demand.
In London, commodity-heavy FTSE 100 fell 0.28%, weighed by losses in oil and mining stocks.
Mining giants Rio Tinto and BHP Billiton declined 0.41% and 0.72%, while Eurasian Natural Resources ans Xstrata tumbled 1.85% and 0.50% respectively.
Oil and gas major Anglo American was also on the downside, with shares tumbling 1.02%, while rival BP dropped 0.52%.
Meanwhile, U.K. lenders tracked their European counterparts lower. Lloyds Banking edged 0.16% lower and HSBC Holdings declined 0.55%, while the Royal Bank of Scotland and Barclays plummeted 0.55% and 1.06%.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 1.14% decline, S&P 500 futures signaled a 1.15% drop, while the Nasdaq 100 futures indicated a 1.17% loss.
Later in the day, the U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as government data on personal income and spending.