Investing.com - European stocks were mostly lower on Tuesday, as investors remained cautious ahead of the Federal Reserve and Bank of Japan’s policy meetings this week and as oil prices took a downward turn.
During European morning trade, the EURO STOXX 50 slipped 0.16%, France’s CAC 40 fell 0.21%, while Germany’s DAX 30 added 0.16%.
Investors remained cautious ahead of the Fed’s monthly policy meeting, set to begin later Tuesday, amid ongoing uncertainty over a possible rate hike.
Market participants were also looking ahead to the BoJ’s upcoming policy meeting this week, amid speculation over a possible rate cut further into negative territory.
Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) slipped 0.17% and 0.13%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) advanced 0.21% and 0.56%.
Among peripheral lenders, Intesa Sanpaolo (MI:ISP) declined 0.58% and Unicredit (MI:CRDI) rallied 1.95% in Italy, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) slid 0.46% and 0.79% respectively.
Meanwhile, energy-related stocks were hit as oil prices turned lower on Tuesday after Venezuela said global crude supplies needed to decline by 10% in order to bring production down to consumption levels, sparking fresh supply glut concerns.
French oil and gas major Total SA (PA:TOTF) lost 0.90% and Italy’s ENI (MI:ENI) dropped 0.55%, while Norwegian rival Statoil (OL:STL) declined 0.48%.
On the upside, Bayer AG (DE:BAYGN) rallied 1.01% after the German drugmaker said its two best-selling drugs had a higher annual peak sales potential than previously targeted.
In London, FTSE 100 edged down 0.11%, weighed by losses in the financial sector.
Shares in Lloyds Banking (LON:LLOY) dropped 0.68% and the Royal Bank of Scotland (LON:RBS) retreated 0.70%, while Barclays (LON:BARC) tumbled 1.38%. HSBC Holdings (LON:HSBA) was almost unchanged, with shares dipping only 0.04%.
J Sainsbury (OTC:JSAIY) was also on the downside, with shares plummeting 1.36% after analysts at Shore Capital reiterated their “hold” rating on the stock.
Meanwhile, mining stocks were broadly higher on the commodity-heavy index. Glencore (LON:GLEN) rose 0.22% and Fresnillo (LON:FRES) gained 0.90%, while BHP Billiton (LON:BLT) jumped 1.08%.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.02% dip, S&P 500 futures showed a 0.07% loss, while the Nasdaq 100 futures indicated a 0.18% fall.