Investing.com - European stock markets were lower on Tuesday, as market sentiment weakened after European ministers rejected a proposal by Greece’s creditors aimed at restructuring Greece’s debt in order to avert a default.
During European morning trade, the EURO STOXX 50 dropped 0.78%, France’s CAC 40 retreated 0.70%, while Germany’s DAX 30 slumped 0.81%.
Following a meeting in Brussels, euro zone ministers called on private bond holders to drop demands that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.
Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swap to be struck "within days".
Financial stocks led losses as shares in German Deutsche Bank tumbled 2.92%, while French lenders Societe Generale and Credit Agricole plunged 3.25% and 1.77% respectively.
Ratings agency Standard & Poor’s downgraded both Societe Generale and Credit Agricole to A from A+, with a stable outlook, on Monday.
Meanwhile, Petroplus Holdings said it plans to file for insolvency in Switzerland and other jurisdictions, after asking for its shares to be suspended from trading on Monday. The company had about USD1 billion in credit lines suspended last month, preventing it from supplying its plants with crude.
Elsewhere, Siemens saw shares dive 3.40% and said achieving its full-year goals has become harder to reach after profitability at its four divisions fell due to the effects of the euro zone’s debt crisis on the economy.
In London, FTSE 100 slid 0.64%, as U.K. lenders tracked their European counterparts sharply lower.
Barclays plummeted 2.61% and the Royal Bank of Scotland tumbled 2.13%, while Lloyds Banking and HSBC Holdings declined 2.10% and 0.73%.
Mining giants Rio Tinto and Bhp Billiton also contributed to losses, with shares retreating 0.76% and 1.60% respectively, while copper producers Xstrata and Kazakhmys dropped 1.47% and 1.77%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.30%, S&P 500 futures signaled a 0.42% decline, while the Nasdaq 100 futures indicated a 0.32% loss.
Also Tuesday, preliminary data showed that manufacturing activity in Germany rose more-than-expected in January, expanding at the fastest pace since August 2011.
EU finance ministers were to hold discussions in Brussels throughout the day.
During European morning trade, the EURO STOXX 50 dropped 0.78%, France’s CAC 40 retreated 0.70%, while Germany’s DAX 30 slumped 0.81%.
Following a meeting in Brussels, euro zone ministers called on private bond holders to drop demands that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.
Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swap to be struck "within days".
Financial stocks led losses as shares in German Deutsche Bank tumbled 2.92%, while French lenders Societe Generale and Credit Agricole plunged 3.25% and 1.77% respectively.
Ratings agency Standard & Poor’s downgraded both Societe Generale and Credit Agricole to A from A+, with a stable outlook, on Monday.
Meanwhile, Petroplus Holdings said it plans to file for insolvency in Switzerland and other jurisdictions, after asking for its shares to be suspended from trading on Monday. The company had about USD1 billion in credit lines suspended last month, preventing it from supplying its plants with crude.
Elsewhere, Siemens saw shares dive 3.40% and said achieving its full-year goals has become harder to reach after profitability at its four divisions fell due to the effects of the euro zone’s debt crisis on the economy.
In London, FTSE 100 slid 0.64%, as U.K. lenders tracked their European counterparts sharply lower.
Barclays plummeted 2.61% and the Royal Bank of Scotland tumbled 2.13%, while Lloyds Banking and HSBC Holdings declined 2.10% and 0.73%.
Mining giants Rio Tinto and Bhp Billiton also contributed to losses, with shares retreating 0.76% and 1.60% respectively, while copper producers Xstrata and Kazakhmys dropped 1.47% and 1.77%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.30%, S&P 500 futures signaled a 0.42% decline, while the Nasdaq 100 futures indicated a 0.32% loss.
Also Tuesday, preliminary data showed that manufacturing activity in Germany rose more-than-expected in January, expanding at the fastest pace since August 2011.
EU finance ministers were to hold discussions in Brussels throughout the day.