Investing.com - European stocks declined on Wednesday, amid fresh Ukraine tensions and after the release of downbeat data on German factory orders, while investors eyed the European Central Bank's upcoming policy statement on Thursday.
During European morning trade, the DJ Euro Stoxx 50 slid 0.46%, France’s CAC 40 slumped 0.38%, while Germany’s DAX dropped 0.75%.
Global equity markets came under pressure as a buildup of Russian armed forces along its border with Ukraine fuelled fresh concerns over geopolitical tensions in the region.
Official data earlier showed that German factory orders dropped 3.2% in June, disappointing expectations for a 1.0% increase. May's figure was revised to a 1.6% fall from a previously estimated 1.7% drop.
Meanwhile, investors remained cautious ahead of the conclusion of the ECB’s monthly monetary policy review on Thursday, amid concerns over the diverging monetary policy stance between the central bank and its major peers.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) fell 0.29% and 0.45%, while Germany's Commerzbank (XETRA:CBKG) declined 0.62%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) slid 0.30% and 0.72% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) dropped 0.35% and 0.55%.
Elsewhere, Swiss Re (SIX:SRENH) plummeted 2.33% after the reinsurance company posted second-quarter earnings that missed analysts' estimates.
In London, FTSE 100 retreated 0.64%, as U.K. lenders mostly tracked their European counterparts lower.
Lloyds Banking (LONDON:LLOY) fell 0.27% and the Royal Bank of Scotland (LONDON:RBS) lost 0.40%, while shares in Barclays (LONDON:BARC) dropped 0.47%. HSBC Holdings (LONDON:HSBA) overperformed however, climbing 0.61%.
Adding to gains, Standard Chartered (LONDON:STAN) saw shares climb 0.82% despite reports it is in discussions with the New York Department of Financial Services over the bank's alleged failure to flag high risk transactions for further review.
Meanwhile, Sage Group (LONDON:SGE) was the top performer on the index, up 1.73%, after the business software provider appointed Stephen Kelly, a former boss of Micro Focus Intl, to replace Guy Berruyer as chief executive officer.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.13% gain, S&P 500 futures signaled a 0.23% increase, while the Nasdaq 100 futures indicated a 0.20% rise.
Later in the day, the U.S. was to publish data on the trade balance.