Investing.com - European stocks were lower on Friday, as the European Central Bank’s latest policy decision disappointed investors and as declining oil prices weighed on the energy sector after rising sharply on Thursday.
During European morning trade, the EURO STOXX 50 edged down 0.10%, France’s CAC 40 fell 0.17%, while Germany’s DAX 30 slid 0.36%.
European equities weakened after ECB President Mario Draghi said on Thursday that the current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.
The comments came after the central bank left its benchmark interest rate at a record-low 0.0%, in line with market expectations.
The ECB also raised its 2016 growth forecast to 1.7% from 1.6%, but slightly lowered its 2017 forecast from 1.7% to 1.6%.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.77% and 1.45%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) surged 1.44% and 2.28%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) advanced 0.68%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) rose 0.37% and 0.38% respectively.
Meanwhile, declining oil prices weighed on energy-related stocks. French oil and gas major Total SA (PA:TOTF) dropped 0.46% and Italy’s ENI (MI:ENI) slipped 0.14%, while Russian rival Gazprom (MCX:GAZP) tumbled 0.95%.
Bayer AG (DE:BAYGN) added to losses, with shares retreating 1.11% amid reports the German drugmaker is thinking of selling its dermatology business, as the company continues to get rid of peripheral enterprises with hopes of taking over crop chemicals giant Monsanto (NYSE:MON) Co.
In London, FTSE 100 slid 0.29%, weighed by Ashtead Group (LON:AHT), whose shares lost 1.86% after analysts from Deutsche Bank reaffirmed its “sell” rating on the stock.
In the financial sector, stocks were mostly higher. Shares in Lloyds Banking (LON:LLOY) edged up 0.10% and the Royal Bank of Scotland (LON:RBS) gained 0.67%, while Barclays (LON:BARC) and HSBC Holdings (LON:HSBA) climbed 0.77% and 0.80% respectively.
Mining stocks added to gains on the commodity-heavy index, as Rio Tinto (LON:RIO) edged up 0.17% and Glencore (LON:GLEN) rose 0.30%, while BHP Billiton (LON:BLT) advanced 0.69%.
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 showed a 0.14% loss, while the Nasdaq 100 futures indicated a 0.12% slip.