Investing.com - European stocks opened sharply lower on Tuesday, as downbeat Chinese trade data added to concerns over a slowdown in the world’s second largest economy and as investors remained cautious ahead of this week’s European Central Bank meeting.
During European morning trade, the EURO STOXX 50 lost 1.41%, France’s CAC 40 plummeted 1.55%, while Germany’s DAX 30 tumbled 1.45%.
Data earlier showed that China’s trade surplus narrowed to $32.59 billion in February from $63.29 billion the previous month, compared to expectations for a trade surplus of $50.15 billion.
Chinese exports dropped 25.4% last month, while imports fell by 13.8%.
Investors were eyeing the ECB’s next policy meeting after the bank disappointed expectations with a smaller-than-expected stimulus move at its December meeting.
Market participants also continued to focus on the oil market, as prices rose above $37 a barrel on Monday amid ongoing hopes for production cuts.
Financial stocks were broadly lower, as BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) plummeted 1.73% and 2.13%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 1.59% and 2.01%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) retreated 0.79% and 1.38% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) tumbled 0.93% and 1.90%.
Elsewhere, RWE AG (DE:RWEG) lost 1.16% after the German utilities company said that it will be cutting 2,400 jobs at its U.K. unit after reporting a full-year loss as billing system failures and more than 350,000 customers left the company.
In London, commodity-heavy FTSE 100 tumbled 1.03%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LON:RIO) plummeted 4.72% and Glencore (LON:GLEN) lost 4.74%, while rivals Anglo American (LON:AAL) and Bhp Billiton (LON:BLT) dove 5.59% and 5.51% respectively.
Financial stocks were also on the downside, as the Royal Bank of Scotland (LON:RBS) declined 1.13% and HSBC Holdings (LON:HSBA) tumbled 1.23%, while Barclays (LON:BARC) plummeted 1.38% and Lloyds Banking (LON:LLOY) plunged 1.65%.
Meanwhile, Burberry Group (LON:BRBY) saw shares surge 4.92% after BNP Paribas reaffirmed its neutral rating on the stock.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.67% drop, S&P 500 futures a 0.73% decline, while the Nasdaq 100 futures indicated a 0.92% loss.