Investing.com - European stocks dropped on Friday, as concerns over a potential Greek default weighed heavily on equity markets as negotiations stalled on Thursday.
During European morning trade, the EURO STOXX 50 declined 0.69%, France’s CAC 40 dropped 0.63%, while Germany’s DAX 30 slid 0.43%.
Market sentiment was hit as negotiations between Greece and its creditors broke down once again on Thursday.
Time is running out for the Greek government to secure a deal to unlock bailout funds ahead of the looming deadline for a €1.6 billion repayment to the International Monetary Fund on June 30.
If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) declined 0.58% and 1.10%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) slid 0.29% and 0.67%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) dropped 0.85% and 0.66% respectively, while Spanish bank Banco Santander (MADRID:SAN) lost 0.88%.
Elsewhere, K+S AG skyrocketed 31.08% amid reports the German potash supplier is likely to reject a takeover offer from Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. because it deems the bid to be too low.
In London, commodity-heavy FTSE 100 declined 0.61%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LONDON:RIO) and Anglo American (LONDON:AAL) tumbled 1.13% and 1.27% respectively, while Bhp Billiton (LONDON:BLT) and Glencore Xstrata (LONDON:GLEN) both lost 1.42%.
Financial stocks added to losses, as the Royal Bank of Scotland (LONDON:RBS) slid 0.49% and Lloyds Banking (LONDON:LLOY) dropped 0.73%, while Barclays (LONDON:BARC) and HSBC Holdings (LONDON:HSBA) retreated 0.81% and 0.89%.
On the upside, Tesco (LONDON:TSCO) Plc surged 2.99% after the U.K.’s biggest supermarket chain posted a smaller than expected decline in quarterly sales.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.03% uptick, S&P 500 futures signaled a 0.02% dip, while the Nasdaq 100 futures indicated a 0.08% loss.