Investing.com - European stock markets remained sharply lower on Thursday, weakened by heavy losses in financial stocks after Moody’s said it may downgrade global banks while delays in Greek debt talks continued to weigh.
During European afternoon trade, the EURO STOXX 50 plunged 1.18%, France’s CAC 40 dropped 0.77%, while Germany’s DAX 30 tumbled 1.19%.
Sentiment was hit following reports that European Union officials are looking at ways to delay the second bailout, amid concerns that political leaders in Greece are not fully committed to implementing harsh austerity measures demanded by international creditors.
Investor confidence also weakened after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
Following the news, peripheral lenders led losses as shares in Spain’s BBVA and Banco Santander plunged 4.65% and 3.10%, while Italian lenders Unicredit and Intesa Sanpaolo declined 2.88% and 0.13% respectively.
On the upside, France’s second largest bank, Societe Generale added 0.09% although it said earlier that fourth-quarter profit declined 89% as the investment bank posted a loss.
Renault, France’s second-largest carmaker, also added to gains with shares surging 2.83% as it reported 2012 free cash flow of EUR1.08 billion, exceeding its previously set target of more than EUR500 million.
In London, FTSE 100 dropped 0.82%, weighed by losses in the financial sector while data showed earlier that consumer confidence in the U.K. rose more-than-expected in January.
Shares in Barclays tumbled 2.30% and the Royal Bank of Scotland declined 1.81%, while Lloyds Banking and HSBC Holdings retreated 1.62% and 1.19%.
Mining giants Rio Tinto and Bhp Billiton were also lower with shares plummeting 3.03% and 2.08%, while copper producers Xstrata and Kazakhmys plunged 1.36% and 2.60% respectively.
Elsewhere, BAE Systems Plc dropped 3.08% after forecasting that sales growth will stagnate this year. Europe’s largest defense company said the U.K. market will fail to grow in 2012 and that U.S. defense budget cuts will create “uncertainty” in coming years.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.34%, S&P 500 futures signaled a 0.52% decline, while the Nasdaq 100 futures indicated a 0.28% loss.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.
During European afternoon trade, the EURO STOXX 50 plunged 1.18%, France’s CAC 40 dropped 0.77%, while Germany’s DAX 30 tumbled 1.19%.
Sentiment was hit following reports that European Union officials are looking at ways to delay the second bailout, amid concerns that political leaders in Greece are not fully committed to implementing harsh austerity measures demanded by international creditors.
Investor confidence also weakened after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
Following the news, peripheral lenders led losses as shares in Spain’s BBVA and Banco Santander plunged 4.65% and 3.10%, while Italian lenders Unicredit and Intesa Sanpaolo declined 2.88% and 0.13% respectively.
On the upside, France’s second largest bank, Societe Generale added 0.09% although it said earlier that fourth-quarter profit declined 89% as the investment bank posted a loss.
Renault, France’s second-largest carmaker, also added to gains with shares surging 2.83% as it reported 2012 free cash flow of EUR1.08 billion, exceeding its previously set target of more than EUR500 million.
In London, FTSE 100 dropped 0.82%, weighed by losses in the financial sector while data showed earlier that consumer confidence in the U.K. rose more-than-expected in January.
Shares in Barclays tumbled 2.30% and the Royal Bank of Scotland declined 1.81%, while Lloyds Banking and HSBC Holdings retreated 1.62% and 1.19%.
Mining giants Rio Tinto and Bhp Billiton were also lower with shares plummeting 3.03% and 2.08%, while copper producers Xstrata and Kazakhmys plunged 1.36% and 2.60% respectively.
Elsewhere, BAE Systems Plc dropped 3.08% after forecasting that sales growth will stagnate this year. Europe’s largest defense company said the U.K. market will fail to grow in 2012 and that U.S. defense budget cuts will create “uncertainty” in coming years.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.34%, S&P 500 futures signaled a 0.52% decline, while the Nasdaq 100 futures indicated a 0.28% loss.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.