Investing.com - European stock markets were lower on Wednesday, weighed by losses in the financial sector as a weak German debt auction failed to ease concerns over the handling of the euro zone’s financial crisis.
During European afternoon trade, the EURO STOXX 50 plummeted 1.23%, France’s CAC 40 retreated 0.80%, while Germany’s DAX 30 dropped 0.72%.
Germany sold EUR4.06 billion of 10-year bonds earlier at an average yield of 1.93%, compared with 1.98% at November's launch of the January 2022 bond, which was one of the worst German debt auctions since the inception of the single currency.
Adding to concerns over the euro zone’s debt woes, bank deposits at the European Central Bank's overnight facility reached a new all-time high of EUR453 billion on Tuesday, underscoring the unwillingness of European lenders to lend to each other.
Financial stocks remained broadly lower as shares in Germany’s Deutsche Bank and Commerzbank tumbled 2.25% and 3.49%, while French lenders BNP Paribas and Societe Generale declined 0.51% and 1.94% respectively.
Peripheral lenders were also sharply lower with UniCredit, Italy’s largest lender plummeting 8.69% to the lowest level since March 2009 after saying it will sell new shares in a EUR7.5 billion offer to strengthen its capital position.
Meanwhile, Banco Comercial Portugues and Banco Espirito Santo plunged 6.67% and 5.29% respectively after Portugal sold EUR1 billion in three-month government bonds, at an average yield of 4.34% compared to a yield of 4.87% at a similar auction in December.
On the upside, EDF added 3.59% although the company said it will have to invest between EUR10 billion and EUR15 billion to bring safety standards at its French reactors into line with recommendations from national nuclear safety watchdog ASN.
In London, FTSE 100 eased 0.02% after data showed that U.K. construction sector activity unexpectedly improved in December, extending the period of sustained expansion to 12 months.
Energy stocks were among the top gainers with British Petroleum climbing 1.57%, while mining giants Rio Tinto and Bhp Billiton advanced 0.56% and 0.03% respectively.
The financial sector was mixed as Barclays rose 0.24% and Lloyds banking added 0.07%, while shares in HSBC Holdings and the Royal Bank of Scotland slid 0.44% and 0.33%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.24%, S&P 500 futures signaled a 0.28% decline, while the Nasdaq 100 futures indicated a 0.03% loss.
Later in the day, the U.S. was to release data on factory orders.
During European afternoon trade, the EURO STOXX 50 plummeted 1.23%, France’s CAC 40 retreated 0.80%, while Germany’s DAX 30 dropped 0.72%.
Germany sold EUR4.06 billion of 10-year bonds earlier at an average yield of 1.93%, compared with 1.98% at November's launch of the January 2022 bond, which was one of the worst German debt auctions since the inception of the single currency.
Adding to concerns over the euro zone’s debt woes, bank deposits at the European Central Bank's overnight facility reached a new all-time high of EUR453 billion on Tuesday, underscoring the unwillingness of European lenders to lend to each other.
Financial stocks remained broadly lower as shares in Germany’s Deutsche Bank and Commerzbank tumbled 2.25% and 3.49%, while French lenders BNP Paribas and Societe Generale declined 0.51% and 1.94% respectively.
Peripheral lenders were also sharply lower with UniCredit, Italy’s largest lender plummeting 8.69% to the lowest level since March 2009 after saying it will sell new shares in a EUR7.5 billion offer to strengthen its capital position.
Meanwhile, Banco Comercial Portugues and Banco Espirito Santo plunged 6.67% and 5.29% respectively after Portugal sold EUR1 billion in three-month government bonds, at an average yield of 4.34% compared to a yield of 4.87% at a similar auction in December.
On the upside, EDF added 3.59% although the company said it will have to invest between EUR10 billion and EUR15 billion to bring safety standards at its French reactors into line with recommendations from national nuclear safety watchdog ASN.
In London, FTSE 100 eased 0.02% after data showed that U.K. construction sector activity unexpectedly improved in December, extending the period of sustained expansion to 12 months.
Energy stocks were among the top gainers with British Petroleum climbing 1.57%, while mining giants Rio Tinto and Bhp Billiton advanced 0.56% and 0.03% respectively.
The financial sector was mixed as Barclays rose 0.24% and Lloyds banking added 0.07%, while shares in HSBC Holdings and the Royal Bank of Scotland slid 0.44% and 0.33%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.24%, S&P 500 futures signaled a 0.28% decline, while the Nasdaq 100 futures indicated a 0.03% loss.
Later in the day, the U.S. was to release data on factory orders.