Investing.com - European stocks opened lower on Wednesday, as declining oil prices continued to weigh on the energy sector and as Tuesday’s weak U.S. data dampened recent optimism over the strength of the economy.
During European morning trade, the EURO STOXX 50 edged 0.12% lower, France’s CAC 40 fell 0.28%, while Germany’s DAX 30 slipped 0.14%.
Optimism over the strength of the U.S. economy subsided after data on Tuesday showed that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise, after a 0.6% slip in the three months to March.
Meanwhile, oil prices moved lower on Wednesday, as global supply glut concerns persisted.
French oil and gas major Total SA (PA:TOTF) lost 0.93% and Italy’s ENI (MI:ENI) slid 0.37%, while Norwegian rival Statoil (OL:STL) plummeted 2.56%.
Austrian energy firm OMV AG (VIE:OMVV) added to losses, with shares tumbling 1.21% after it announced plans to cut investments and costs.
Elsewhere, Novozymes A/S B (CO:NZYMb) dove 8.18% after the Danish biotech company cut its outlook for full-year organic sales growth after it reported earnings below analysts’ expectations.
Meanwhile, financial stocks were broadly higher as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rose 0.25% and 0.41%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) rallied 0.97% and 1.27%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 1.20% and 1.18% respectively. However, Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) underperformed, with shares slipping 0.13% and 0.17%.
In London, FTSE 100 eased 0.09%, weighed by Smith & Nephew (LON:SN), whose shares plummeted 1.64%. The medical device-maker made headlines earlier in the week when it said it offloaded its gynaecology business for $350 million and unveiled a $300 million share buyback.
Energy-related stocks were also on the downside, with BP (LON:BP) dropping 0.46%, while rival company Roayl Dutch Shell (LON:RDSa) lost 1.00%.
On the upside, HSBC Holdings (LON:HSBA) and Lloyds Banking (LON:LLOY) rose 0.25% and 0.38% respectively, while the Royal Bank of Scotland (LON:RBS) climbed 0.75% and Barclays (LON:BARC) jumped 1.49%.
Mining stocks added to gains on the commodity-heavy index. Shares in Glencore (LON:GLEN) edged up 0.14% and Fresnillo (LON:FRES) advanced 1.28%, while Randgold Resources (LON:RRS) rallied 1.35%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.02% uptick, S&P 500 futures a 0.05% gain, while the Nasdaq 100 futures indicated a 0.03% rise.