Investing.com - European stocks opened sharply lower on Monday, as investors remained cautious ahead of policy meetings in the U.S. and Japan this week and as declining oil prices also weighed.
During European morning trade, the EURO STOXX 50 retreated 0.96%, France’s CAC 40 dropped 0.85%, while Germany’s DAX 30 tumbled 1.05%.
Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after a dismal U.S. employment report for May, which showed the slowest rate of jobs growth since September 2010.
Meanwhile, although the Bank of Japan is widely expected to leave its monetary policy unchanged this week, some analysts believe the central bank could surprise markets with additional easing measures.
Oil prices moved sharply lower on Monday, weighed by the strength of the U.S. dollar.
Energy-related stocks were on the downside, as French oil and gas major Total SA (PA:TOTF) lost 0.98% and Italy’s ENI (MI:ENI) tumbled 1.38%, while Russian rival Gazprom (MCX:GAZP) plummeted 1.75%.
Financial stocks were also broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 1.38% and 1.68%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 1.84% and 2.40%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) plunged 2.75% and 3.11% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) retreated 1.55% and 1.94%.
Elsewhere, Volkswagen (DE:VOWG_p) shares dove 3.03% as CEO Matthias Müller was set to announce his long-term vision for the company, also called Strategy 2025, on Thursday. The plan is expected to focu on fixing the U.S. cars affected by the emissions scandal, saving costs and increasing the company's profitability.
In London, FTSE 100 dropped 0.58%, as U.K. lenders tracked their European counterparts lower.
Shares in HSBC Holdings (LON:HSBA) fell 0.13% and Lloyds Banking (LON:LLOY) lost 1.50%, while Barclays (LON:BARC) tumbled 1.60%. The Royal Bank of Scotland (LON:RBS) overperformed with shares advancing 0.42%.
Sports Direct (LON:SPD) was one of the worst performers on the index, with shares down 4.70%, after the company confirmed its ‘continued interest' in BHS jobs and stores.
Mining stocks were also mostly lower on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) fell 0.26% and BHP Billiton (LON:BLT) declined 0.48%, while Glencore (LON:GLEN) tumbled 0.95%. Randgold Resources (LON:RRS) overperformed however, with shares rallying 1.36%,
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.25% fall, S&P 500 futures a 0.24% loss, while the Nasdaq 100 futures indicated a 0.22% slip.