Investing.com - European stocks dropped on Wednesday, as investors remained cautious as Greek lawmakers prepared for a second vote on bailout reforms later in the day.
During European morning trade, the EURO STOXX 50 retreated 0.40%, France’s CAC 40 declined 0.45%, while Germany’s DAX 30 slid 0.45%.
The Greek parliament was set to vote later Wednesday on a second set of reforms needed to secure the country's bailout deal.
If lawmakers approve the financial and judicial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors.
On Monday, Greek banks reopened following a forced 3-week closure, while restrictions on cash withdrawals remained in place.
In addition, the International Monetary Fund confirmed that Greece had cleared its overdue debt repayments of €2.05 billion and was no longer in arrears.
The repayments, and another for €4.2 billion to the European Central Bank due on Monday, were made possible by a short-term European Union loan of €7 billion.
Greece's next major deadline is August 20, when it must pay €3.2 billion owed to the ECB, followed by a payment of €1.5 billion to the IMF in September.
Financial stocks were mixed, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) declined 0.52% and 0.79%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) fell 0.13% and 0.42%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) retreated 0.63% and 1.32% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) dropped 0.59% and 0.73%.
Elsewhere, Telenor ASA (OSLO:TEL) plummeted 2.73% after the Norwegian phone company reported earnings below analysts' estimates.
In London, commodity-heavy FTSE 100 tumbled 0.96%, weighed by sharp losses in the mining sector.
Shares in Anglo American (LONDON:AAL) lost 2.88% and Fresnillo (LONDON:FRES) plummeted 2.91%, while rivals Rio Tinto (LONDON:RIO) and Bho Billiton plunged 2.92% and 3.34% respectively.
Financial stocks added to losses, as Barclays (LONDON:BARC) and Lloyds Banking (LONDON:LLOY) declined 0.83% and 0.98%, while the Royal Bank of Scotland (LONDON:RBS) and HSBC Holdings (LONDON:HSBA) tumbled 1.43% and 1.50% respectively.
Also on the downside, ARM Holdings (LONDON:ARM) Plc lost 3.51% after the semiconductor group posted revenue below analysts' projections.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.39% drop, S&P 500 futures signaled a 0.40% decline, while the Nasdaq 100 futures indicated a 1.19% loss.