Investing.com - European stocks were lower on Tuesday, as declining oil prices and concerns over political instability in Greece continued to weigh heavily on market sentiment.
During European morning trade, the EURO STOXX 50 declined 0.51%, France’s CAC 40 shed 0.52%, while Germany’s DAX 30 retreated 0.62%.
Asian equity markets plummeted overnight, as falling oil prices and concerns over the outlook for the euro zone economy sparked a selloff in stocks.
Markets were jittery amid uncertainty over Greece’s future in the euro zone if far-left anti-austerity party Syriza won elections due to be held later this month.
Earlier Tuesday, research firm Markit said that Spain's services purchasing managers' index rose to 54.3 last month from a reading of 52.7 in November. Analysts had expected the index to tick up to 52.9 in December.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) slipped 0.28% and 0.77%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) dropped 0.52% and 0.61%.
Among peripheral lenders, Italy's Unicredit slid 0.34%, while Spanish banks BBVA and Banco Santander dropped 0.32% and 1.01% respectively.
Elsewhere, Bay.Motoren Werke (XETRA:BMWG) retreated 0.75% amid reports the German car maker revived wireless charging systems to avoid electric car hassles.
In London, FTSE 100 slid 0.73%, as U.K. lenders tracked their European counterparts lower.
Shares in Lloyds Banking (LONDON:LLOY) declined 0.56% and HSBC Holdings (LONDON:HSBA) dropped 0.80%, while the Royal Bank of Scotland (LONDON:RBS) retreated 0.86% and Barclays tumbled 1.44%.
Energy stocks added to losses, on the back of dropping oil prices. Oil and gas major BP (LONDON:BP) saw shares plummet 1.62%, while Petrofac lost 1.25% and Tullow Oil (LONDON:TLW) plunged 2.47%.
Meanwhile, mining stocks were broadly higher as Anglo American gained 0.84% and Randgold Resources rallied 1.25%, while Fresnillo (LONDON:FRES) led gains on the index with shares up 1.33%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.14% fall, S&P 500 futures signaled a 0.15% loss, while the Nasdaq 100 futures indicated a 0.23% decline.