Investing.com - European stock markets extended losses on Wednesday, as growing concerns over a possible Greek exit from the euro zone continued to weigh on sentiment while investors eyed the outcome of a meeting of European leaders later in the day.
During European afternoon trade, the EURO STOXX 50 plunged 2.23%, France’s CAC 40 dove 2.07%, while Germany’s DAX 30 tumbled 1.64%.
Sentiment came under pressure after former Greek Prime Minister Lucas Papademos said late Tuesday that Greece had no choice but to stick with a painful austerity program or face a damaging exit from the euro zone, a risk he said was unlikely to materialize but was real.
Meanwhile, concerns over a division between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany, further added to the negative tone in markets, ahead of the EU summit in Brussels later in the day.
Financial stocks pushed lower, as shares in Dutch lender ING Group plummeted 4.33%, while France’s Societe General and BNP Paribas tumbled 3.91% and 2.77% respectively.
German’s two biggest lenders, Deutsche Bank and Commerzbank, also remained sharply lower, with shares dropping 1.99% and 2.35%.
Meanwhile, France-based Michelin, the world’s second-largest tire maker, sank 4.61% after Goldman Sachs lowered its recommendation on the stock to sell.
On the upside, Carrefour, the world’s second-largest retailer, jumped 2.80% after the stock was raised to outperform, the equivalent of buy, from underperform at Credit Suisse Group AG and added to the firm’s focus list.
In London, commodity-heavy FTSE 100 tumbled 1.78%, weighed by sharp losses in mining stocks, while data showed that U.K. industrial order expectations deteriorated more-than-expected in May, adding to concerns over the health of the country’s economy.
Shares in Rio Tinto dove 4.15%, after Australia's Queensland state approved earlier the almost USD1.5 billion expansion of the company’s bauxite mining operations, leaving the project in the hands of the federal government, which has raised concerns about shipping through the Great Barrier Reef.
Rival Bhp Billiton saw shares plummet 3.60%, while copper producers Xstrata and Kazakhmys plunged 5.12% and 5.22% respectively.
Financial stocks also added to losses, as shares in the Royal Bank of Scotland dropped 3.37% and Lloyds Banking declined 3.28%, while HSBC Holdings and Barclays retreated 2.28% and 1.88%.
On the upside, Great Portland Estates Plc added 2.80% after the real-estate developer said net asset value rose about 12% in fiscal 2012 as the value of its properties and developments increased.
Cove Energy Plc surged 11.38% after the U.K. agreed to be acquired by PTT Exploration & Production Pcl after the Thai producer raised its offer to GBP1.22 billion, beating out Royal Dutch Shell Plc.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to fall of 0.63%, S&P 500 futures signaled a 0.65% loss, while the Nasdaq 100 futures indicated a 0.66% decline.
Later in the day, the U.S. was to publish official data on new home sales.
During European afternoon trade, the EURO STOXX 50 plunged 2.23%, France’s CAC 40 dove 2.07%, while Germany’s DAX 30 tumbled 1.64%.
Sentiment came under pressure after former Greek Prime Minister Lucas Papademos said late Tuesday that Greece had no choice but to stick with a painful austerity program or face a damaging exit from the euro zone, a risk he said was unlikely to materialize but was real.
Meanwhile, concerns over a division between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany, further added to the negative tone in markets, ahead of the EU summit in Brussels later in the day.
Financial stocks pushed lower, as shares in Dutch lender ING Group plummeted 4.33%, while France’s Societe General and BNP Paribas tumbled 3.91% and 2.77% respectively.
German’s two biggest lenders, Deutsche Bank and Commerzbank, also remained sharply lower, with shares dropping 1.99% and 2.35%.
Meanwhile, France-based Michelin, the world’s second-largest tire maker, sank 4.61% after Goldman Sachs lowered its recommendation on the stock to sell.
On the upside, Carrefour, the world’s second-largest retailer, jumped 2.80% after the stock was raised to outperform, the equivalent of buy, from underperform at Credit Suisse Group AG and added to the firm’s focus list.
In London, commodity-heavy FTSE 100 tumbled 1.78%, weighed by sharp losses in mining stocks, while data showed that U.K. industrial order expectations deteriorated more-than-expected in May, adding to concerns over the health of the country’s economy.
Shares in Rio Tinto dove 4.15%, after Australia's Queensland state approved earlier the almost USD1.5 billion expansion of the company’s bauxite mining operations, leaving the project in the hands of the federal government, which has raised concerns about shipping through the Great Barrier Reef.
Rival Bhp Billiton saw shares plummet 3.60%, while copper producers Xstrata and Kazakhmys plunged 5.12% and 5.22% respectively.
Financial stocks also added to losses, as shares in the Royal Bank of Scotland dropped 3.37% and Lloyds Banking declined 3.28%, while HSBC Holdings and Barclays retreated 2.28% and 1.88%.
On the upside, Great Portland Estates Plc added 2.80% after the real-estate developer said net asset value rose about 12% in fiscal 2012 as the value of its properties and developments increased.
Cove Energy Plc surged 11.38% after the U.K. agreed to be acquired by PTT Exploration & Production Pcl after the Thai producer raised its offer to GBP1.22 billion, beating out Royal Dutch Shell Plc.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to fall of 0.63%, S&P 500 futures signaled a 0.65% loss, while the Nasdaq 100 futures indicated a 0.66% decline.
Later in the day, the U.S. was to publish official data on new home sales.