Investing.com - European stocks were sharply lower on Friday, led by losses in the financial sector as well as among energy stocks as the Organization of the Petroleum Exporting Countries latest report continued to weigh.
During European morning trade, the EURO STOXX 50 lost 1.22%, France’s CAC 40 retreated 1.27%, while Germany’s DAX 30 tumbled 1.33%.
OPEC'S monthly report released Wednesday forecast that global demand for the group's oil will drop to 28.9 million barrels a day next year, the lowest in 12 years, and down from 29.4 million barrels a day in 2014
European equities were also hit earlier in the week by a surprise decision by the Greek government to bring forward a parliamentary vote for president to next week from February.
The move raised the prospect of snap elections if Prime Minister Antonis Samaras’ candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.
Separately, China's government decided on Tuesday to set new restrictions on collateral for short-term loans. The move fuelled fears that the world’s second-largest economy is slowing at a faster rate than anticipated.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) declined 0.52% and 0.99%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) tumbled 1.12% and 1.81%.
The Financial Times reported earlier that Commerzbank will have to pay more than $1 billion to settle allegations it broke U.S. anti money-laundering and sanctions laws.
Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo dropped 0.75% and 0.76% respectively, while Spanish banks BBVA and Banco Santander declined 0.64% and 0.78%.
In the energy sector, French oil and gas giant Total SA (PARIS:TOTF) dropped 0.89% and Germany's RWE AG (XETRA:RWEG) lost 0.50%, while Spanish company Repsol retreated 0.87%.
Elsewhere, Hugo Boss AG (XETRA:BOSSn) lost 1.62% following reports Permira Holdings Ltd. plans to further reduce its stake in the German luxury-clothing company.
In London, commodity-heavy FTSE 100 dropped 1.33%, weighed by sharp losses in energy and mining stocks.
BP (LONDON:BP) tumbled 1.07% and Tullow Oil (LONDON:TLW) plummeted 3.37%, while Petrofac saw shares lose 3.83%.
Mining giants Rio Tinto and Glencore Xstrata (LONDON:GLEN) declined 1.69% and 1.75% respectively, while rivals Antofagasta and Randgold Resources plunged 2.17% and 2.25%.
In the financial sector, stocks were also on the downside. Shares in HSBC Holdings (LONDON:HSBA) slipped 0.27% and Lloyds Banking (LONDON:LLOY) retreated 0.87%, while Barclays dropped 0.97% and the Royal Bank of Scotland (LONDON:RBS) tumbled 0.99%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.43% decline, S&P 500 futures signaled a 0.37% drop, while the Nasdaq 100 futures indicated a 0.43% loss.