Investing.com - European stocks opened mostly lower on Friday, as uncertainty following the Brexit vote continued to linger although expectations for a potential summer rate cut in the U.K. lent some support to equity markets.
During European morning trade, the EURO STOXX 50 slipped 0.17%, France’s CAC 40 fell 0.23%, while Germany’s DAX 30 dipped 0.07%.
Investors were cautious as markets continued to recover from Britain’s shock decision last week to leave the European Union.
Bank of England Governor, Mark Carney, indicated on Thursday that more stimulus may be needed over the summer, sparking expectations for an upcoming rate cut.
Meanwhile, sentiment weakened after data on Friday showed that China’s Caixin manufacturing purchasing managers’ index fell to 48.6 in June from 49.2 the previous month, compared to expectations for a downtick to 49.1.
At the same time, China’s official manufacturing PMI came in at 50.0 last month from 50.1 in May, in line with expectations.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.18% and 0.55%, while Germany’s Deutsche Bank (DE:DBKGn) advanced 0.45%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) surged 2.23% and 2.35% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) climbed 0.36% and 1.43%.
On the downside, Adidas (DE:ADSGN) shares tumbled 1.25% following news the sports apparel company agreed to expand its partnership with Kanye West, including opening new stores, in a move the group describes as the most significant partnership between a non-athlete and a sports brand.
In other company news, Safran (PA:SAF) slid 0.39% after concluding concluded months of talks with Airbus Group (PA:AIR) to establish a European rocket joint venture. Shares in Airbus were down 0.64%.
In London, FTSE 100 gained 0.44%, led by Aberdeen Asset Management PLC (LON:ADN), whose shares surged 4.01%, and mainly supported by news of a potential U.K. rate cut.
ITV (LON:ITV) saw shares climb 0.56% following reports the Brexit vote – and more specifically the plunge in the company’s share price and in the value of sterling – make the television network a more attractive target for takeover bids.
Mining stocks were mixed on the commodity-heavy index. Shares in Glencore (LON:GLEN) dropped 0.44% and BHP Billiton (LON:BLT) lost 1.05%, while Rio Tinto (LON:RIO) climbed 0.48% and Fresnillo (LON:FRES) surged 2.80%.
Meanwhile, financial stocks were mostly lower, as Lloyds Banking (LON:LLOY) slid 0.35% and Barclays (LON:BARC) declined 1.41% and the Royal Bank of Scotland (LON:RBS) lost 1.81%. HSBC Holdings (LON:HSBA) overperformed however with shares edging up 0.11%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.30% fall, S&P 500 futures a 0.39% drop, while the Nasdaq 100 futures indicated a 0.45% loss.