Investing.com - European stocks slid lower on Thursday, as concerns over a potential Greek default continued to weigh and as investors eyed data on private sector activity later in the day as well as the minutes from the European Central Bank's latest policy meeting.
During European morning trade, the EURO STOXX 50 declined 0.49%, France’s CAC 40 slid 0.39%, while Germany’s DAX 30 dropped 0.54%.
European equities remained under pressure as Athens was still scrambling to reach an agreement with its international lenders over economic reforms they say must be implemented before the final €7.2 billion tranche of the country's €240 billion bailout is released.
Greece is due to make a €305 million payment to the International Monetary Fund on June 5, but will default if a deal is not reached by then.
Earlier Thursday, research group Markit said that Germany's manufacturing purchasing managers' index slipped to 51.4 this month from 52.1 in April, compared to expectations for a rise to 52.3.
Germany's services PMI fell to 52.9 in May from a reading of 54.0 the previous month, disappointing expectations for a downtick to 53.9.
Markit also said that France's manufacturing PMI rose to 49.3 this month from 48.0 in April, while the services PMI ticked up to 51.6 in May from 51.4 the previous month.
Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) declined 0.21% and 0.52%, while Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) slipped 0.24% and 0.36%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) dropped 0.58%, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) eased 0.04% and 0.24%.
Raiffeisen Bank International AG, the second-biggest bank in eastern Europe, plummeted 2.06% after saying that first-quarter profit dove 48%, hit by currency losses in Ukraine and Russia.
In London, FTSE 100 dipped 0.02%, as Burberry still weighed, with shares down 1.66% after the clothing retailer lowered its annual earnings forecast on Wednesday.
Royal Mail (LONDON:RMG) added to losses, with shares tumbling 1.60% after saying the U.K. parcels and letters market remains competitive and forecasting lower annual margins from its German business.
In the financial sector, stocks were mostly lower. Shares in Lloyds Banking (LONDON:LLOY) dipped 0.04% and the Royal Bank of Scotland (LONDON:RBS) edged 0.11% lower, while HSBC Holdings (LONDON:HSBA) lost 1.05%. Barclays (LONDON:BARC) overperformed, with shares climbing 0.42%.
On the upside, Tesco (LONDON:TSCO) Plc led gains on the index, rallying 1.55% after a report said the U.K. grocer will begin a process to sell its South Korean unit in July.
Mining stocks were also broadly higher, as Glencore Xstrata (LONDON:GLEN) gained 0.60% and Bhp Billiton (LONDON:BLT) jumped 1.29%, while Rio Tinto (LONDON:RIO) and Fresnillo (LONDON:FRES) advanced 1.15% and 1.68% respectively.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.16% fall, S&P 500 futures signaled a 0.21% loss, while the Nasdaq 100 futures indicated a 0.32% decline.
Later in the day, the U.S. was to release a string of reports including initial jobless claims, existing home sales and a look at manufacturing activity in the Philadelphia region.