Investing.com - European stocks remained lower on Wednesday, as markets continued to focus on the details of the European Central Bank's stress tests for the euro zone's lenders.
During European afternoon trade, the EURO STOXX 50 retreated 0.88%, France’s CAC 40 tumbled 0.91%, while Germany’s DAX 30 declined 0.40%.
Markets were jittery after the ECB announced that large banks will undergo risk assessments, asset quality reviews and stress tests. The exercise was set to start in November and take 12 months.
Separately, investors were locking in profits after the Department of Labor on Tuesday said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The U.S. unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the U.S. government shutdown.
The disappointing data reinforced expectations that the Federal Reserve will maintain the current pace of its asset purchase program well into next year.
Financial stocks remained broadly lower following the ECB news, as French lenders BNP Paribas and Societe Generale tumbled 1.81% and 1.93%, while Germany's Deutsche Bank plummeted 2.15%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA plunged 2.84% and 3.15% respectively, while Italy's Intesa Sanpaolo and Unicredit declined 2.20% and 2.44%.
Elsewhere, Orange saw shares dive 5.12% after the Paris-based telecommunications company posted lower revenue in the third quarter.
STMicroelectronics plunged 6.73% after the semiconductor maker reported a USD142 million quarterly net loss.
In London, commodity-heavy FTSE 100 shed 0.30%, weighed by sharp losses in the mining sector, while the Bank of England’s October meeting minutes said unemployment was falling slightly faster than forecast.
Shares in Glencore Xstrata lost 1% and Rio Tinto plummeted 2.12%, while Antofagasta and Evraz plunged 2.68% and 3.35% respectively.
Meanwhile, financial stocks remained mostly lower, as Lloyds Banking dipped 0.02% and the Royal Bank of Scotland dropped 0.79%, while HSBC Holdings and Barclays tumbled 1.53% and 1.75%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.53% drop, S&P 500 futures signaled a 0.63% decline, while the Nasdaq 100 futures indicated a 0.65% slide.
During European afternoon trade, the EURO STOXX 50 retreated 0.88%, France’s CAC 40 tumbled 0.91%, while Germany’s DAX 30 declined 0.40%.
Markets were jittery after the ECB announced that large banks will undergo risk assessments, asset quality reviews and stress tests. The exercise was set to start in November and take 12 months.
Separately, investors were locking in profits after the Department of Labor on Tuesday said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The U.S. unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the U.S. government shutdown.
The disappointing data reinforced expectations that the Federal Reserve will maintain the current pace of its asset purchase program well into next year.
Financial stocks remained broadly lower following the ECB news, as French lenders BNP Paribas and Societe Generale tumbled 1.81% and 1.93%, while Germany's Deutsche Bank plummeted 2.15%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA plunged 2.84% and 3.15% respectively, while Italy's Intesa Sanpaolo and Unicredit declined 2.20% and 2.44%.
Elsewhere, Orange saw shares dive 5.12% after the Paris-based telecommunications company posted lower revenue in the third quarter.
STMicroelectronics plunged 6.73% after the semiconductor maker reported a USD142 million quarterly net loss.
In London, commodity-heavy FTSE 100 shed 0.30%, weighed by sharp losses in the mining sector, while the Bank of England’s October meeting minutes said unemployment was falling slightly faster than forecast.
Shares in Glencore Xstrata lost 1% and Rio Tinto plummeted 2.12%, while Antofagasta and Evraz plunged 2.68% and 3.35% respectively.
Meanwhile, financial stocks remained mostly lower, as Lloyds Banking dipped 0.02% and the Royal Bank of Scotland dropped 0.79%, while HSBC Holdings and Barclays tumbled 1.53% and 1.75%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.53% drop, S&P 500 futures signaled a 0.63% decline, while the Nasdaq 100 futures indicated a 0.65% slide.