Investing.com - European stock markets remained sharply lower on Monday, as concerns over the handling of the euro zone’s debt crisis persisted after the Group of 20 nations rebuffed European demands for more international aid.
During European afternoon trade, the EURO STOXX 50 tumbled 1.02%, France’s CAC 40 plummeted 1.15%, while Germany’s DAX 30 dropped 1.17%.
The Group of 20 nations failed over the weekend to reach an agreement on enlarging the size of the International Monetary Fund’s lending capacity and told European leaders that any outside assistance will be conditional upon a stronger euro zone debt firewall.
Risk appetite was also hit by the recent rally in oil prices, fanning concerns that higher prices could create a drag on the global economic recovery.
But sentiment remained mildly supported as markets eyed the European Central Bank's second liquidity boosting operation, set to take place on Wednesday, after the bank carried out a similar successful operation in December.
Car makers led losses after J.P. Morgan Cazenove downgraded the European auto sector to neutral from overweight. Shares in Daimler plunged 3.80%, BMW retreated 3.78% and Volkswagen tumbled 1.49%.
Airline companies were also down due to the recent rally in crude oil prices as sanctions were tightened against Iran. Deutsche Lufthansa dropped 3.17% and Air France- KLM Group lost 3.25%.
Meanwhile, financial stocks extended earlier losses as shares in French lenders BNP Paribas and Societe Generale declined 1.78% and 2.13%, while Germany’s Deutsche Bank and Commerzbank retreated 1.65% and 4.28% respectively.
In London, FTSE 100 declined 0.89%, as U.K. lenders tracked their European counterparts lower.
Shares in HSBC Holdings plunged 2.66% and Barclays tumbled 2.15%, while the Royal Bank of Scotland and Lloyds Banking dove 2.10% and 2.08% respectively. Earlier Monday, HSBC reported full-year net income of USD16.8 billion, in line with estimates.
Elsewhere, Essar Energy sank 8.02% after the Indian power producer and oil refiner said it made a loss after tax of USD568.2 million in 2011 after the Supreme Court of India set aside a sales tax deferment scheme.
Associated British Foods fell 1.89% after the world’s second-biggest sugar producer forecast that first-half profit will exceed the previous year.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.39%, S&P 500 futures signaled a 0.45% decline, while the Nasdaq 100 futures indicated a 0.39% loss.
Later in the day, Germany’s parliament was to hold an extraordinary session to vote on Greece’s second bailout, while the U.S. was to publish industry data on pending home sales.
During European afternoon trade, the EURO STOXX 50 tumbled 1.02%, France’s CAC 40 plummeted 1.15%, while Germany’s DAX 30 dropped 1.17%.
The Group of 20 nations failed over the weekend to reach an agreement on enlarging the size of the International Monetary Fund’s lending capacity and told European leaders that any outside assistance will be conditional upon a stronger euro zone debt firewall.
Risk appetite was also hit by the recent rally in oil prices, fanning concerns that higher prices could create a drag on the global economic recovery.
But sentiment remained mildly supported as markets eyed the European Central Bank's second liquidity boosting operation, set to take place on Wednesday, after the bank carried out a similar successful operation in December.
Car makers led losses after J.P. Morgan Cazenove downgraded the European auto sector to neutral from overweight. Shares in Daimler plunged 3.80%, BMW retreated 3.78% and Volkswagen tumbled 1.49%.
Airline companies were also down due to the recent rally in crude oil prices as sanctions were tightened against Iran. Deutsche Lufthansa dropped 3.17% and Air France- KLM Group lost 3.25%.
Meanwhile, financial stocks extended earlier losses as shares in French lenders BNP Paribas and Societe Generale declined 1.78% and 2.13%, while Germany’s Deutsche Bank and Commerzbank retreated 1.65% and 4.28% respectively.
In London, FTSE 100 declined 0.89%, as U.K. lenders tracked their European counterparts lower.
Shares in HSBC Holdings plunged 2.66% and Barclays tumbled 2.15%, while the Royal Bank of Scotland and Lloyds Banking dove 2.10% and 2.08% respectively. Earlier Monday, HSBC reported full-year net income of USD16.8 billion, in line with estimates.
Elsewhere, Essar Energy sank 8.02% after the Indian power producer and oil refiner said it made a loss after tax of USD568.2 million in 2011 after the Supreme Court of India set aside a sales tax deferment scheme.
Associated British Foods fell 1.89% after the world’s second-biggest sugar producer forecast that first-half profit will exceed the previous year.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.39%, S&P 500 futures signaled a 0.45% decline, while the Nasdaq 100 futures indicated a 0.39% loss.
Later in the day, Germany’s parliament was to hold an extraordinary session to vote on Greece’s second bailout, while the U.S. was to publish industry data on pending home sales.