Investing.com - European stocks were lower on Thursday, a renewed tensions in Ukraine weighed on market sentiment and as investors eyed the release of euro zone inflation data later in the day.
During European morning trade, the DJ Euro Stoxx 50 retreated 0.55%, France’s CAC 40 lost 0.52%, while Germany’s DAX slid 0.33%.
On Wednesday, the U.S. and the European Union announced a fresh round of sanctions against Russia, following the annexation of Crimea in April and ongoing tensions in the rest of Ukraine. The U.S. package was the largest round of penalties so far.
In reponse to the sanctions, Russian President Vladimir Putin said that relations with the U.S. are in danger of reaching a "dead end" and could damage U.S. business interests in his country.
Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) declined 0.82% and 0.89%, while Germany's Deutsche Bank (XETRA:DBKGn) slid 0.70%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) tumbled 1.09% and 1.64% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) lost 0.90% and 1.06%.
Elsewhere, Novartis (SIX:NOVN) saw shares plummet 1.23% as the drugmaker reported second-quarter profit below analysts’ estimates, weighed by declining sales and a worsening loss in its vaccine division.
On the upside, SAP AG (XETRA:SAPG) surged 2.30% after the German maker of business-management software said online applications helped increase second-quarter revenue as operating profit climbed.
In London, FTSE 100 edged down 0.27%, as U.K. lenders tracked their European counterparts lower.
Shares in Lloyds Banking (LONDON:LLOY) fell 0.26% and the Royal Bank of Scotland (LONDON:RBS) slid 0.33%, while HSBC Holdings (LONDON:HSBA) retreated 0.37% and Barclays (LONDON:BARC) tumbled 1.23%.
Mining stocks were also broadly lower, with Bhp Billiton (LONDON:BLT) slipping 0.22% and Glencore Xstrata (LONDON:GLEN) declining 0.63%, while rivals Fresnillo (LONDON:FRES) and Vedanta Resources (LONDON:VED) slumped 0.44% and 0.45% respectively.
Meanwhile, ITV (LONDON:ITV) led gains on the index, soaring 6.37%, after BSkyB sold a 6.4% stake in the free-to-air broadcaster to cable group Liberty Global (NASDAQ:LBTYA), raising cash ahead of a possible deal to expand in Europe.
In the U.S., equity markets pointed to a lower open. The Dow 30 futures pointed to a 0.10% loss, S&P 500 futures signaled a 0.22% decline, while the Nasdaq 100 futures indicated a 0.17% fall.
Later in the day, the euro zone was to release data on consumer prices, while the U.S. was to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index.