Investing.com - European stocks opened sharply lower on Tuesday, as declining oil prices continued to weigh on equity markets and investors eyed a string of service sector reports from the euro zone.
During European morning trade, the EURO STOXX 50 tumbled 1.67%, France’s CAC 40 lost 1.77%, while Germany’s DAX 30 plummeted 2.09%.
Earlier Tuesday, data showed that German factory orders declined by 1.2% in February, compared to expectations for a 0.2% rise. Factory orders increased by 0.5% in January, whose figure was revised from a previously estimated 0.1% dip.
Oil prices continued to move lower on Tuesday, amid growing doubts over the likelihood of a collective supply cut happening later this month.
Energy stocks were broadly lower, as French oil and gas major Total SA (PA:TOTF) plummeted 1.99% and Italy’s ENI (MI:ENI) SpA lost 1.80%, while Norwegian rival Statoil ASA (OL:STL) tumbled 1.93%.
Financial stocks were also on the downside, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) retreated 0.98% and 1.88%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 1.65% and 2.65%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) tumbled 1.64% and 1.46% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) slid 0.98% and 1.88%.
Elsewhere, Orange SA (PA:ORAN) dropped 0.42% and Bouygues (PA:BOUY) SA tumbled 1.27% after talks for Orange to takeover Bouygues’ telecom unit broke down late Friday.
In London, conmodity-heavy FTSE 100 retreated 0.97%, weighed by sharp losses in the mining sector.
Shares in Anglo American (LON:AAL) lost 3.% and Rio Tinto (LON:RIO) plummeted 3.14%, while rivals Bhp Billiton (LON:BLT) and Glencore (LON:GLEN) plunged 3.53% and 3.69% respectively.
Financial stocks added to losses, as Lloyds Banking (LON:LLOY) dropped 0.81% and the Royal Bank of Scotland (LON:RBS) declined 1.67%, while HSBC Holdings (LON:HSBA) tumbled 1.95% and Barclays (LON:BARC) plummeted 2.03%.
Meanwhile, Tesco (LON:TSCO) shares lost 1.94% following reports over 12,000 of the company’s workers wrre expected to vote for a strike on Tuesday. Unions say the retailer has refused to implement a Labour Court recommendation for a 2% pay increase.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.50% loss, S&P 500 futures a 0.62% drop, while the Nasdaq 100 futures indicated a 0.57% decline.