Investing.com - European stocks opened sharply lower on Monday, as concerns over the consequences of the U.S. government shutdown and the nation's fiscal troubles weighed broadly on market sentiment.
During European morning trade, the EURO STOXX 50 tumbled 1.12%, France’s CAC 40 plummeted 1.31%, while Germany’s DAX 30 retreated 1.22%.
Markets were jittery after Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
In addition, delays in U.S. economic data releases looked likely to fuel uncertainty over whether the Federal Reserve will hold off on any move to roll back its USD85 billion a month asset purchase program.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale retreated 0.86% and 1.01%, while Germany's Deutsche Bank plummeted 2.03%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander slid 0.33% and 1.23% respectively. Italy's Intesa Sanpaolo overperformed however, gaining 0.77%.
Elsewhere, European Aeronautic Defence & Space climbed 0.65% after its Airbus SAS subsidiary won its first order from Japan Airlines.
In London, FTSE 100 declined 0.80% as U.K. lenders tracked their European counterparts lower.
Shares in the Royal Bank of Scotland retreated 0.75% and HSBC Holdings lost 0.90%, while Barclays and Lloyds Banking tumbled 1.04% and 1.91%.
Meanwhile, mining stocks were mixed. Glencore Xstrata saw shares drop 1.12% and Rio Tinto plummeted 1.38%, while Eurasian Natural Resources and Fresnillo rose 0.23% and 1.37% respectively.
Burberry Group added to losses, down 2.36%, after the luxury-goods maker’s chief executive officer told a newspaper that the slowdown in Chinese sales may lengthen.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 0.90% drop, S&P 500 futures signaled a 1.04% decline, while the Nasdaq 100 futures indicated a 0.96% loss.
Later in the day, the euro zone was to release revised data on second quarter growth.
During European morning trade, the EURO STOXX 50 tumbled 1.12%, France’s CAC 40 plummeted 1.31%, while Germany’s DAX 30 retreated 1.22%.
Markets were jittery after Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
In addition, delays in U.S. economic data releases looked likely to fuel uncertainty over whether the Federal Reserve will hold off on any move to roll back its USD85 billion a month asset purchase program.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale retreated 0.86% and 1.01%, while Germany's Deutsche Bank plummeted 2.03%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander slid 0.33% and 1.23% respectively. Italy's Intesa Sanpaolo overperformed however, gaining 0.77%.
Elsewhere, European Aeronautic Defence & Space climbed 0.65% after its Airbus SAS subsidiary won its first order from Japan Airlines.
In London, FTSE 100 declined 0.80% as U.K. lenders tracked their European counterparts lower.
Shares in the Royal Bank of Scotland retreated 0.75% and HSBC Holdings lost 0.90%, while Barclays and Lloyds Banking tumbled 1.04% and 1.91%.
Meanwhile, mining stocks were mixed. Glencore Xstrata saw shares drop 1.12% and Rio Tinto plummeted 1.38%, while Eurasian Natural Resources and Fresnillo rose 0.23% and 1.37% respectively.
Burberry Group added to losses, down 2.36%, after the luxury-goods maker’s chief executive officer told a newspaper that the slowdown in Chinese sales may lengthen.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 0.90% drop, S&P 500 futures signaled a 1.04% decline, while the Nasdaq 100 futures indicated a 0.96% loss.
Later in the day, the euro zone was to release revised data on second quarter growth.