Investing.com - European stocks opened lower on Thursday, even as the U.S. announced a last minute budget deal, avoiding the government a sovereign default.
During European morning trade, the EURO STOXX 50 retreated 0.51%, France’s CAC 40 slid 0.54%, while Germany’s DAX 30 shed 0.45%.
Market sentiment found support amid relief over the last minute deal to avert an unprecedented U.S. sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
The agreement came with just hours to spare before the deadline to raise the USD16.7 trillion debt ceiling. President Barack Obama signed the bill into law early on Thursday morning and pledged to begin reopening the government "immediately."
However, investors remained concerned over the economic impact of the government shutdown and the possibility of another debt crisis, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale slid 0.39% and 0.43%, while Germany's Deutsche Bank declined 0.83%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander retreated 0.44% and 0.67% respectively, while Italy's Unicredit and Intesa Sanpaolo fell 0.01% and 0.82%.
Bloomberg reported earlier that BBVA was about to book a one-time loss of EUR2.3 billion against its earnings this year after writing down the value of its stake in China Citic Bank.
Adding to losses, Outotec dove 8.74% after the Finnish supplier of smelters to mining companies cut its guidance for this year.
In London, commodity-heavy FTSE 100 declined 0.35%, weighed by sharp losses in the mining sector.
Glencore Xstrata saw shares slide 0.76% and Vedanta Resources tumbled 1.32%, while gold miner Randgold Resources plummeted 2.38%.
Financial stocks were also on the downside. The Royal Bank of Scotland fell 0.26% and Lloyds Banking lost 0.57%, while HSBC Holdings and Barclays slumped 1.07% and 1.24% respectively.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% dip, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.06% gain.
Later in the day, the U.S. was to publish a report on initial jobless claims and the Philly Fed manufacturing index.
During European morning trade, the EURO STOXX 50 retreated 0.51%, France’s CAC 40 slid 0.54%, while Germany’s DAX 30 shed 0.45%.
Market sentiment found support amid relief over the last minute deal to avert an unprecedented U.S. sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
The agreement came with just hours to spare before the deadline to raise the USD16.7 trillion debt ceiling. President Barack Obama signed the bill into law early on Thursday morning and pledged to begin reopening the government "immediately."
However, investors remained concerned over the economic impact of the government shutdown and the possibility of another debt crisis, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale slid 0.39% and 0.43%, while Germany's Deutsche Bank declined 0.83%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander retreated 0.44% and 0.67% respectively, while Italy's Unicredit and Intesa Sanpaolo fell 0.01% and 0.82%.
Bloomberg reported earlier that BBVA was about to book a one-time loss of EUR2.3 billion against its earnings this year after writing down the value of its stake in China Citic Bank.
Adding to losses, Outotec dove 8.74% after the Finnish supplier of smelters to mining companies cut its guidance for this year.
In London, commodity-heavy FTSE 100 declined 0.35%, weighed by sharp losses in the mining sector.
Glencore Xstrata saw shares slide 0.76% and Vedanta Resources tumbled 1.32%, while gold miner Randgold Resources plummeted 2.38%.
Financial stocks were also on the downside. The Royal Bank of Scotland fell 0.26% and Lloyds Banking lost 0.57%, while HSBC Holdings and Barclays slumped 1.07% and 1.24% respectively.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% dip, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.06% gain.
Later in the day, the U.S. was to publish a report on initial jobless claims and the Philly Fed manufacturing index.