Investing.com - European stocks turned lower on Monday, in thin year-end trade as investors remained cautious after European Central Bank Governing Council member Jens Weidmann warned last week against keeping interest rates low.
During European afternoon trade, the EURO STOXX 50 fell 0.26%, France’s CAC 40 edged down 0.14%, while Germany’s DAX 30 slipped 0.20%.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
On Friday, ECB Governing Council member Weidmann, who also heads the German Bundesbank, said that keeping interest rates low may endanger political reforms. He added that low inflation shouldn’t be used to justify loose monetary policy.
"We must take care to raise interest rates again in a timely manner should inflation pressures build," Weidmann said.
Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale rose 0.18% and 0.54%, while Germany's Deutsche Bank gained 0.33%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA fell 0.22% and 0.46%, while Italy's Intesa Sanpaolo and Unicredit slipped 0.01% and 0.19%.
Another Italian lender, Banca Monte dei Paschi di Siena, jumped 0.98%, erasing earlier losses, after its investors backed the postponement of a stock sale until at least May from the first quarter.
Elsewhere, Sanofi tumbled 1.09% after the company failed to win U.S. regulatory approval for its multiple sclerosis drug Lemtrada.
In London, FTSE 100 fell 0.28%, as U.K. lenders turned mostly lower.
Shares in HSBC Holdings edged down 0.08% and the Royal Bank of Scotland shed 0.32%, while Lloyds Banking dropped 0.96%. Barclays overperformed on the other hand, up 0.47%.
Meanwhile, mining stocks remained broadly higher, with Glencore Xstrata inching 0.02% higher and Fresnillo jumping 1.29%, while rival company Vedanta Resources continued to lead gains on the index with shares surging 2.38%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures signaled a 0.06% gain, while the Nasdaq 100 futures indicated a 0.02% uptick.
Also Monday, official data showed that Spanish retail sales rose by a seasonally adjusted 1.9% last month, easily surpassing expectations for a 0.3% decline. Retail sales fell by 0.5% in October.
Later in the day, the U.S. was to release industry data on pending home sales.
During European afternoon trade, the EURO STOXX 50 fell 0.26%, France’s CAC 40 edged down 0.14%, while Germany’s DAX 30 slipped 0.20%.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
On Friday, ECB Governing Council member Weidmann, who also heads the German Bundesbank, said that keeping interest rates low may endanger political reforms. He added that low inflation shouldn’t be used to justify loose monetary policy.
"We must take care to raise interest rates again in a timely manner should inflation pressures build," Weidmann said.
Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale rose 0.18% and 0.54%, while Germany's Deutsche Bank gained 0.33%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA fell 0.22% and 0.46%, while Italy's Intesa Sanpaolo and Unicredit slipped 0.01% and 0.19%.
Another Italian lender, Banca Monte dei Paschi di Siena, jumped 0.98%, erasing earlier losses, after its investors backed the postponement of a stock sale until at least May from the first quarter.
Elsewhere, Sanofi tumbled 1.09% after the company failed to win U.S. regulatory approval for its multiple sclerosis drug Lemtrada.
In London, FTSE 100 fell 0.28%, as U.K. lenders turned mostly lower.
Shares in HSBC Holdings edged down 0.08% and the Royal Bank of Scotland shed 0.32%, while Lloyds Banking dropped 0.96%. Barclays overperformed on the other hand, up 0.47%.
Meanwhile, mining stocks remained broadly higher, with Glencore Xstrata inching 0.02% higher and Fresnillo jumping 1.29%, while rival company Vedanta Resources continued to lead gains on the index with shares surging 2.38%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures signaled a 0.06% gain, while the Nasdaq 100 futures indicated a 0.02% uptick.
Also Monday, official data showed that Spanish retail sales rose by a seasonally adjusted 1.9% last month, easily surpassing expectations for a 0.3% decline. Retail sales fell by 0.5% in October.
Later in the day, the U.S. was to release industry data on pending home sales.