Investing.com - European stocks were sharply lower on Monday, as political instability in Italy and concerns over a possible government shutdown in the U.S. weighed on investor confidence.
During European morning trade, the EURO STOXX 50 lost 1.10%, France’s CAC 40 retreated 1.12%, while Germany’s DAX 30 tumbled 1.10%.
Markets were jittery after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.
Meanwhile, political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a government shutdown
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale plummeted 1.88% and 2.03%, while Germany's Deutsche Bank tumbled 1.58%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA lost 1.02% and 1.91% respectively, while Italy's Unicredit and Intesa Sanpaolo plunged 3.60% and 3.86%.
Earlier in the day, Intesa appointed Carlo Messina as chief executive officer to replace Enrico Tommaso Cucchiani, who resigned.
Elsewhere, Siemens declined 1.14% following reports the company's new CEO Joe Kaeser will cut more jobs than initially planned to boost earnings.
In London, FTSE 100 retreated 0.83%, as U.K. lenders tracked their European counterparts lower.
Shares in HSBC Holdings declined 0.59% and Barclays slid 0.73%, while Lloyds Banking and the Royal Bank of Scotland plummeted 1.44% and 2.50%.
Mining stocks were also on the downside, as Glencore Xstrata plunged 2.41%, while Polymetal and Evraz tumbled 1.19% and 1.64%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.80% loss, S&P 500 futures signaled a 0.82% drop, while the Nasdaq 100 futures indicated a 0.66% decline.
Also Monday, data showed that China's HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile. Economists had expected an unchanged reading.
During European morning trade, the EURO STOXX 50 lost 1.10%, France’s CAC 40 retreated 1.12%, while Germany’s DAX 30 tumbled 1.10%.
Markets were jittery after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.
Meanwhile, political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a government shutdown
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale plummeted 1.88% and 2.03%, while Germany's Deutsche Bank tumbled 1.58%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA lost 1.02% and 1.91% respectively, while Italy's Unicredit and Intesa Sanpaolo plunged 3.60% and 3.86%.
Earlier in the day, Intesa appointed Carlo Messina as chief executive officer to replace Enrico Tommaso Cucchiani, who resigned.
Elsewhere, Siemens declined 1.14% following reports the company's new CEO Joe Kaeser will cut more jobs than initially planned to boost earnings.
In London, FTSE 100 retreated 0.83%, as U.K. lenders tracked their European counterparts lower.
Shares in HSBC Holdings declined 0.59% and Barclays slid 0.73%, while Lloyds Banking and the Royal Bank of Scotland plummeted 1.44% and 2.50%.
Mining stocks were also on the downside, as Glencore Xstrata plunged 2.41%, while Polymetal and Evraz tumbled 1.19% and 1.64%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.80% loss, S&P 500 futures signaled a 0.82% drop, while the Nasdaq 100 futures indicated a 0.66% decline.
Also Monday, data showed that China's HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile. Economists had expected an unchanged reading.