Investing.com - European stocks were lower on Wednesday, as markets were closely watching the European Central Bank, which was set to unveil details of its stress tests for the euro zone's lenders.
During European morning trade, the EURO STOXX 50 retreated 0.70%, France’s CAC 40 shed 0.67%, while Germany’s DAX 30 declined 0.34%.
Markets were jittery after the ECB said the definition of capital it uses to stress test banks will be stricter than the one in an imminent review of their assets andconfirmed that lenders will be required to have a capital ratio of 8%.
Separately, nvestors 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 were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.31% and 1.77%, while Germany's Deutsche Bank retreated 0.78%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA plummeted 1.76% and 1.90% respectively, while Italy's Unicredit and Intesa Sanpaolo declined 1.30% and 1.66%.
Elsewhere, Orange saw shares deive 3.15% after the Paris-based telecommunications company posted lower revenue in the third quarter.
STMicroelectronics plunged 4.87% after the semiconductor maker reported a USD142 million quarterly net loss.
In London, FTSE 100 shed 0.38%, weighed by sharp losses in the financial sector.
Shares in Lloyds Banking dipped 0.02% and Barclays slid 0.35%, while HSBC Holdings plummeted 1.71%. The Royal Bank of Scotland overperformed on the other hand, rallying 1.43%.
Mining stocks added to losses, as Glencore Xstrata fell 0.31% and Rio Tinto declined 0.78%, while Polymetal retreated 0.57%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.38% fall, S&P 500 futures signaled a 0.48% drop, while the Nasdaq 100 futures indicated a 0.46% decline.
During European morning trade, the EURO STOXX 50 retreated 0.70%, France’s CAC 40 shed 0.67%, while Germany’s DAX 30 declined 0.34%.
Markets were jittery after the ECB said the definition of capital it uses to stress test banks will be stricter than the one in an imminent review of their assets andconfirmed that lenders will be required to have a capital ratio of 8%.
Separately, nvestors 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 were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.31% and 1.77%, while Germany's Deutsche Bank retreated 0.78%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA plummeted 1.76% and 1.90% respectively, while Italy's Unicredit and Intesa Sanpaolo declined 1.30% and 1.66%.
Elsewhere, Orange saw shares deive 3.15% after the Paris-based telecommunications company posted lower revenue in the third quarter.
STMicroelectronics plunged 4.87% after the semiconductor maker reported a USD142 million quarterly net loss.
In London, FTSE 100 shed 0.38%, weighed by sharp losses in the financial sector.
Shares in Lloyds Banking dipped 0.02% and Barclays slid 0.35%, while HSBC Holdings plummeted 1.71%. The Royal Bank of Scotland overperformed on the other hand, rallying 1.43%.
Mining stocks added to losses, as Glencore Xstrata fell 0.31% and Rio Tinto declined 0.78%, while Polymetal retreated 0.57%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.38% fall, S&P 500 futures signaled a 0.48% drop, while the Nasdaq 100 futures indicated a 0.46% decline.