Investing.com - European stocks opened lower on Monday, as investors eyed a fresh round of Brexit talks due to begin later in the day and as a stronger euro continued to weigh.
During European morning trade, the EURO STOXX 50 dropped 0.70%, France’s CAC 40 retreated 0.56%, while Germany’s DAX 30 declined 0.64% by 03:40 a.m. ET (07:40 GMT).
The single currency strengthened after a speech by European Central Bank President Mario Draghi at the Jackson Hole economic symposium avoided giving any new indication as to when the bank might wind down its stimulus program, but acknowledged that the recovery in the euro area is gaining momentum.
The comments came after a speech by Federal Reserve Chair Janet Yellen made no reference to monetary policy, disappointing some investors who had hoped she would adopt a hawkish tone.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) slid 0.60% and 0.33%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 0.79% and 1.48%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) eased 0.07% and 0.06% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) declined 0.44% and 0.24%.
Elsewhere, SAP AG (DE:SAPG) saw shares tumble 1.02% even after saying over the weekend that it joined forces with technology giant International Business Machines (NYSE:IBM) Corporation IBM to launch a solution for the retail and consumer packaged goods industries.
The solution is expected to help boost profitability and improve consumer experience.
Safran (PA:SAF) SA added to losses, with shares down 0.78%. The French aerospace giant announced on Sunday that it plans to open a manufacturing operation at Mobile Aeroplex, in Alabama, and hire 20 employees over the next three years.
In London, FTSE 100 eased 0.08%, as a third round of Article 50 negotiations between the U.K. and European Union was set to begin in Brussels later Monday.
Building materials company CRH (LON:CRH) was one of the worst performers on the index, with shares down 2.61%. The group announced last Thursday the sale of its US distribution business for $2.6 billion and the purchase of Germany's Fels for €600 million.
Meanwhile, mining stocks were mixed on the commodity-heavy index. Shares in Glencore (LON:GLEN) slid 0.37% and Fresnillo (LON:FRES) retreated 0.97%, while Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) rallied 1.30% and 1.41% respectively.
In the financial sector, stocks were mostly higher as HSBC Hodings inched up 0.04% and the Royal Bank of Scotland (LON:RBS) added 0.26%, while Lloyds Banking (LON:LLOY) rose 0.28%. Barclays (LON:BARC) underperformed, with shares slipping 0.28%.
Provident Financial (LON:PFG) was the top performer on the index, with shares soaring 22.46% after the company late last week appointed Chris Gillespie as managing director of the home credit business, replacing Andy Parkinson.
The move came as the consumer finance lender is racing to fix its technical problems in time to stop staff leaving for rival firms and after it issued on Tuesday its second profit warning in three months.
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.23% loss, S&P 500 futures signaled a 0.24% fall, while the Nasdaq 100 futures indicated a 0.33% slide.