Investing.com – European stock markets were sharply lower on Thursday, as shares in the financial sector led losses following a fresh downgrade of Greek sovereign debt, while U.S. futures indexes pointed to a lower open on Wall Street.
During European morning trade, the EURO STOXX 50 fell 1%, France’s CAC 40 slumped 1.25%, while Germany's DAX 30 dropped 1.3%
On Wednesday, ratings agency Moody's cut Greece's sovereign rating to Caa1 from B1, only four notches above the default level. The outlook on the new rating is negative, in a sign that another downgrade is likely in the short-to-medium term.
Lenders, many of which have exposure to Greek debt, were broadly lower. Deutsche Bank saw shares fall 1.6%, BNP Paribas sank 2%, while shares in Societe Generale declined 1.7%.
Meanwhile, automakers performed poorly after industry data on Wednesday showed that U.S. auto sales in May tumbled 8.3% from April. Europe’s largest automaker Volkswagen slumped 1.9%, while French automakers Peugeot and Renault shed 1.4% and 1.8% respectively.
Shares in network service provider Alcatel-Lucent dropped 3.3% after U.S. rival Juniper Networks said weakness in the overall economy was affecting performance in the industry.
In London, the commodity-heavy FTSE 100 was down 0.95% as commodity producers led losses after raw material prices declined amid fears over a slowdown in global demand.
Mining giant BHP Billiton saw shares slump 2.25%, rival Rio Tinto fell 2.5%, while shares in copper producer Xstrata sank 2.6%.
The largest home-improvement retailer in the U.K., Kingfisher saw shares tumble 3.5% after the company lowered its full-year earnings outlook. Chief executive Ian Cheshire said that “this year will be a tough one for all retailers, especially in the U.K.”.
The outlook for U.S. equity markets, meanwhile, was modestly lower. The Dow Jones Industrial Average futures pointed to a decline of 0.1%, S&P 500 futures indicated a drop of 0.15%, while the Nasdaq 100 futures eased down 0.1%.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on non-farm productivity and labor costs. The country was also to publish official data on factory orders.
During European morning trade, the EURO STOXX 50 fell 1%, France’s CAC 40 slumped 1.25%, while Germany's DAX 30 dropped 1.3%
On Wednesday, ratings agency Moody's cut Greece's sovereign rating to Caa1 from B1, only four notches above the default level. The outlook on the new rating is negative, in a sign that another downgrade is likely in the short-to-medium term.
Lenders, many of which have exposure to Greek debt, were broadly lower. Deutsche Bank saw shares fall 1.6%, BNP Paribas sank 2%, while shares in Societe Generale declined 1.7%.
Meanwhile, automakers performed poorly after industry data on Wednesday showed that U.S. auto sales in May tumbled 8.3% from April. Europe’s largest automaker Volkswagen slumped 1.9%, while French automakers Peugeot and Renault shed 1.4% and 1.8% respectively.
Shares in network service provider Alcatel-Lucent dropped 3.3% after U.S. rival Juniper Networks said weakness in the overall economy was affecting performance in the industry.
In London, the commodity-heavy FTSE 100 was down 0.95% as commodity producers led losses after raw material prices declined amid fears over a slowdown in global demand.
Mining giant BHP Billiton saw shares slump 2.25%, rival Rio Tinto fell 2.5%, while shares in copper producer Xstrata sank 2.6%.
The largest home-improvement retailer in the U.K., Kingfisher saw shares tumble 3.5% after the company lowered its full-year earnings outlook. Chief executive Ian Cheshire said that “this year will be a tough one for all retailers, especially in the U.K.”.
The outlook for U.S. equity markets, meanwhile, was modestly lower. The Dow Jones Industrial Average futures pointed to a decline of 0.1%, S&P 500 futures indicated a drop of 0.15%, while the Nasdaq 100 futures eased down 0.1%.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on non-farm productivity and labor costs. The country was also to publish official data on factory orders.