Investing.com - European stocks opened sharply lower in cautious trade on Monday, as the perspective of a June rate hike by the Federal Reserve and declining oil prices weighed on equity markets.
During European morning trade, the EURO STOXX 50 tumbled 1.01%, France’s CAC 40 slid 0.98%, while Germany’s DAX 30 declined 0.81%.
Markets were jittery after the Fed’s April meeting minutes on Wednesday indicated that interest rates could rise as soon as June.
Officials said a June rate hike would be appropriate if economic data indicated that growth was picking up in the second quarter and employment and inflation were firming.
Separately, oil prices moved lower on Monday, due to the overall strength of the U.S. dollar and persistant global supply glut concerns.
Energy-related stocks were broadly lower, as French oil and gas major Total SA (PA:TOTF) tumbled 1.45% and Italy’s ENI (MI:ENI) fell 0.23, while Norwegian rival Statoil ASA (OL:STL) lost 0.67%.
Financial stocks were mixed, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) plummeted 1.31% and 1.48%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) rallied 0.82% and 1.35%.
Among peripheral lenders, Intesa Sanpaolo (MI:ISP) gained 0.64% and Unicredit (MI:CRDI) declined 1.33% in Italy, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) retreated 0.78% and 0.94% respectively.
Elsewhere, Bayer AG NA (DE:BAYGN) plunged 3.51% after the German chemicals group Bayer offered to acquire Monsanto (NYSE:MON) for $122 per share in cash, valuing the U.S. company at $62 billion.
In London, commodity-heavy FTSE 100 dropped 0.52%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LON:RIO) tumbled 1.51% and Bhp Billiton (LON:BLT) lost 1.91%, while Glencore (LON:GLEN) plummeted 1.92% and Anglo American (LON:AAL) dove 3.40%.
Sports Direct (LON:SPD) was also one of the worst performers on the index, with shares sinking 5.15% after the Rangers sports club said it was terminating an agreement allowing a jointly owned company to sell shirts and other official merchandise.
Financial stocks added to losses, as the Royal Bank of Scotland (LON:RBS) slid 0.39% and Lloyds Banking (LON:LLOY) declined 0.50%, while HSBC Holdings (LON:HSBA) dropped 0.69% and Barclays (LON:BARC) lost 0.80%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.17% fall, S&P 500 futures a 0.22% losss, while the Nasdaq 100 futures indicated a 0.22% decline.