Investing.com - European stocks opened sharply lower on Wednesday, led by sharp losses in the financial sector as an ongoing decline in oil prices weighed on energy stocks.
During European morning trade, the EURO STOXX 50 lost 1.03%, France’s CAC 40 tumbled 1.24%, while Germany’s DAX 30 declined 0.65%.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) plummeted 2.11% and 2.32%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) declined 1.28% and 1.59%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 1.18% and 1.60% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) retreated 0.98% and 1.23%.
Meanwhile, ongoing concerns over the level of U.S. crude production weighed on oil prices, which in turn pushed energy stocks broadly lower.
Shares in French oil and gas major Total SA (PA:TOTF) retreated 0.95% and Italy’s ENI (MI:ENI) dropped 0.73%, while Spanish rival Repsol (MC:REP) tumbled 1.02%.
In London, FTSE 100 slid 0.35%, weighed by Provident Financial (LON:PFG) whose shares dove 14.41% after the company warned that reorganising its doorstop lending business would hit profits much more severely than expected.
Provident had announced a major re-organisation of its “home credit” business in February, saying it planned to fire around 2,000 of its self-employed agents and move thousands more into new positions on the company payroll.
Meanwhile, U.K. Lenders tracked their European counterparts lower. Shares in th Royal Bank of Scotland (LON:RBS) lost 0.93% and Barclays (LON:BARC) retreated 0.94%, while Lloyds Banking (LON:LLOY) tumbled 1.07%. HSBC Holdings (LON:HSBA) overperformed however, with shares up 0.17%.
Mining stocks were also on the downside on the commodity-heavy index, as Rio Tinto (LON:RIO) slipped 0.28% and Glencore (LON:GLEN) dropped 0.45%, while Anglo American (LON:AAL) declined 0.64%.
On the upside, Whitbread (LON:WTB) was one of the top performers on the index, as shares surged 5.01% after the company reported total like-for-like sales growth of 2.9% in the 13 weeks to June 1.
Centrica (LON:CNA) added to gains, with shares up 2.52% following news the group is offloading two large gas power plants for £318 million in cash, as it continues to focus on the generation of power at a smaller local and community level.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.10% slip, S&P 500 futures signaled a 0.29% fall, while the Nasdaq 100 futures indicated a 0.34% decline.