Investing.com - European stocks opened lower on Tuesday, as fresh concerns over the global effects of the Brexit vote plagued markets around the globe and investors turned to the Bank of England’s financial stability report due later in the day.
During European morning trade, the EURO STOXX 50 declined 0.81%, France’s CAC 40 retreated 0.76%, while Germany’s DAX 30 dropped 0.88%.
Investors remained cautious as Britain’s shock decision to leave the European Union sparked uncertainty over the consequences of the U.K. vote on the country’s economy and the global economy as a whole.
On Monday, Nigel Farage, a leading proponent of the Brexit campaign, resigned as head of the U.K. Independence Party (UKIP) saying he'd "done his bit."
Market participants were looking ahead to the BoE’s financial stability report due later Tuesday for fresh clarity on the health of the U.K. banking sector in the wake of the Brexit vote.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.10% and 0.94%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) tumbled 1.25% and 1.57%.
Among peripheral lenders, Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) lost 1.09% and 1.23% respectively. Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) overperformed however, with shares gaining 0.34% and 2.22%.
Thyssenkrupp AG (DE:TKAG) added to losses, with shares diving 3.39% after the German industrial group announced a further shakeup of its Industrial Solutions unit, which it is restructuring due to weak demand for plant engineering and a slowdown in its naval business.
In London, FTSE 100 dropped 0.42%, weighed by Sports Direct (LON:SPD), whose shares plummted 4.97% as the group is expected to report a fall in earnings on Thursday after bad summer weather hit clothing sales.
Mining stocks added to losses, as Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) slid 0.66% and 0.72% respectively, while Glencore (LON:GLEN) tumbled 1.64% and Fresnillo (LON:FRES) plunged 5.07%.
In the financial sector, stocks also mostly on the downside. Shares in Barclays (LON:BARC) fell 0.22% and Lloyds Banking (LON:LLOY) lost 0.99%, while the Royal Bank of Scotland (LON:RBS) retreated 1.22%. HSBC Holdings (LON:HSBA) eased up 0.12%.
On the upsidem British American Tobacco (LON:BATS) was one of the top performers on the index, as shares advanced 0.93% after analysts at Credit Suisse (SIX:CSGN) reiterated its ‘outperform’ rating on the stock.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.43% fall, S&P 500 futures a 0.43% drop, while the Nasdaq 100 futures indicated a 0.44% loss.