Investing.com - European stocks opened mostly lower on Wednesday, as investors eyed a speech by European Central Bank President Mario Draghi due later in the trading session amid growing fears over the effects of the Brexit vote on the European economy.
During European morning trade, the EURO STOXX 50 declined 0.49%, France’s CAC 40 dropped 0.49%, while Germany’s DAX 30 fell 0.26%.
Investors were still cautious as Britain’s shock decision to leave the European Union sparked uncertainty over the consequences of the U.K. vote on the country’s economy and the global economy as a whole.
The Bank of England warned on Tuesday of “challenging” risks to financial stability following the Brexit vote and eased regulatory requirements on the banking sector.
BoE Governor Mark Carney said the move represented a "major change" that would help the economy to cope with the Brexit consequences.
Earlier Wednesday, data showed that German factory orders were flat in May, disappointing expectations for an increase of 1.0%. Factory orders fell 1.9% in April, whose figure was revised from a previously estimated decline of 2.0%.
Financial stocks were mixed, as Societe Generale (PA:SOGN) inched up 0.02% and BNP Paribas (PA:BNPP) slid 0.49% in France, while Commerzbank (DE:CBKG) declined 0.63% and Deutsche Bank (DE:DBKGn) rose 0.32% in Germany.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rallied 1.27% and 2.04% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) lost 1.80% and 1.77%
Elsewhere, Volkswagen (DE:VOWG_p) AG fell 0.21%, BMW AG slid 0.56% and Daimler AG (DE:DAIGn) retreated 0.42% following reports the automakers were among six companies raided by Germany’s antitrust regulator in June in a probe of steel purchasing by the auto industry.
In London, commodity-heavy FTSE 100 gained 0.47%, boosted by gains in the mining sector.
Shares in Rio Tinto (LON:RIO) advanced 2.68% and Glencore (LON:GLEN) jumped 3.44%, while Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) rallied 3.38% and 4.23%.
Financial stocks were also mostly higher, as Barclays (LON:BARC) added 0.18% and Lloyds Banking (LON:LLOY) rose 0.23%, while HSBC Holdings (LON:HSBA) gains 0.42%. The Royal Bank of Scotland (LON:RBS) underperformed however, with shares plummeting 2.27%.
On the downside, Standard Life (LON:SL) lost 0.63% and Aviva (LON:AV) dropped 0.43% after the two real estate funds and M&G Investments suspended trading on Tuesday.
Aviva Investors, the fund arm of insurance company Aviva, suspended trading in its £1.8 billion UK Property Trust on Tuesday. Late on Monday, Standard Life Investments, the fund arm of insurer Standard Life, suspended trading in a £2.9 billion fund, as too many investors sought to exit at the same time.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% dip, S&P 500 futures a 0.02% uptick, while the Nasdaq 100 futures indicated a 0.01% loss.