Investing.com - European stock markets were sharply lower on Wednesday, as renewed concerns over the handling of Spain’s financial crisis weighed on market sentiment, overshadowing speculation of further monetary easing by the Federal Reserve.
During European morning trade, the EURO STOXX 50 dropped 0.50%, France’s CAC 40 retreated 0.46%, while Germany’s DAX 30 declined 0.44%.
Investors remained focused on Spanish borrowing costs ahead of the country’s budget statement on Friday, amid concerns that the government will pull back on imposing harsh austerity measures in the face of a looming recession.
Sentiment found support earlier after Italian Prime Minister Mario Monti said earlier that the euro zone’s debt crisis is “almost over”.
Stocks had also rallied on Monday after Fed Chairman Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
The financial sector was broadly also lower as shares in French lenders Societe Generale and BNP Paribas declined 1.53% and 0.92%, while Germany’s Deutsche Bank and Commerzbank dropped 0.44% and 0.46% respectively.
Concern’s over Madrid’s financial troubles directly affected Spanish lenders, with shares in BBVA declining 0.50% and Banco Santander sliding 0.49%.
Meanwhile, energy stocks also contributed to losses. E.ON AG, the world’s largest investor-owned electric utility service provider saw shares retreat 0.22%, while German electric power company RWE fell 1.11% and France’s Total plummeted 2.42%.
In London, FTSE 100 slumped 0.40%, as U.K. lenders tracked their European counterparts lower after data showed that the U.K. economy contracted more-than-initially estimated in the fourth quarter.
Shares in Barclays tumbled 2.25% and Lloyds Banking declined 1.79%, while the Royal Bank of Scotland and HSBC Holdings retreated 0.87% and 0.19% respectively.
Copper producers Xstrata and Kazakhmys were also on the downside, with shares plunging 1.51% and 1.59%, while mining giant Rio Tinto was one of the top gainers, up 0.21%, although the company said 2012 continues to be a “challenging year.”
London-based gold mining company Petropavlovsk Plc also climbed 1.61% after reporting sales that exceeded analyst estimates.
In the U.S., equity markets pointed to a flat open. The Dow Jones Industrial Average futures pointed to a rise of 0.02%, S&P 500 futures signaled a 0.01% increase, while the Nasdaq 100 futures indicated a 0.03% gain.
Also Wednesday, official data confirmed that the French economy grew by 0.2% in the last three months of 2011, in line with preliminary estimates. The euro zone economy contracted by 0.3% in the fourth quarter.
Later in the day, the U.S. was to publish government data on durable goods orders, followed by a report on crude oil stockpiles.
During European morning trade, the EURO STOXX 50 dropped 0.50%, France’s CAC 40 retreated 0.46%, while Germany’s DAX 30 declined 0.44%.
Investors remained focused on Spanish borrowing costs ahead of the country’s budget statement on Friday, amid concerns that the government will pull back on imposing harsh austerity measures in the face of a looming recession.
Sentiment found support earlier after Italian Prime Minister Mario Monti said earlier that the euro zone’s debt crisis is “almost over”.
Stocks had also rallied on Monday after Fed Chairman Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
The financial sector was broadly also lower as shares in French lenders Societe Generale and BNP Paribas declined 1.53% and 0.92%, while Germany’s Deutsche Bank and Commerzbank dropped 0.44% and 0.46% respectively.
Concern’s over Madrid’s financial troubles directly affected Spanish lenders, with shares in BBVA declining 0.50% and Banco Santander sliding 0.49%.
Meanwhile, energy stocks also contributed to losses. E.ON AG, the world’s largest investor-owned electric utility service provider saw shares retreat 0.22%, while German electric power company RWE fell 1.11% and France’s Total plummeted 2.42%.
In London, FTSE 100 slumped 0.40%, as U.K. lenders tracked their European counterparts lower after data showed that the U.K. economy contracted more-than-initially estimated in the fourth quarter.
Shares in Barclays tumbled 2.25% and Lloyds Banking declined 1.79%, while the Royal Bank of Scotland and HSBC Holdings retreated 0.87% and 0.19% respectively.
Copper producers Xstrata and Kazakhmys were also on the downside, with shares plunging 1.51% and 1.59%, while mining giant Rio Tinto was one of the top gainers, up 0.21%, although the company said 2012 continues to be a “challenging year.”
London-based gold mining company Petropavlovsk Plc also climbed 1.61% after reporting sales that exceeded analyst estimates.
In the U.S., equity markets pointed to a flat open. The Dow Jones Industrial Average futures pointed to a rise of 0.02%, S&P 500 futures signaled a 0.01% increase, while the Nasdaq 100 futures indicated a 0.03% gain.
Also Wednesday, official data confirmed that the French economy grew by 0.2% in the last three months of 2011, in line with preliminary estimates. The euro zone economy contracted by 0.3% in the fourth quarter.
Later in the day, the U.S. was to publish government data on durable goods orders, followed by a report on crude oil stockpiles.