Investing.com - European stocks opened sharply lower on Friday, as markets were still jittery after the Bank of Japan’s decision to maintain its monetary policy and as investors eyed the release of euro zone inflation data later in the day.
During European morning trade, the EURO STOXX 50 tumbled 1.45%, France’s CAC 40 plummeted 1.59%, while Germany’s DAX 30 lost 1.30%.
Sentiment weakened after the BoJ chose on Thursday to hold its monetary policy, defying market expectations for additional monetary easing.
The BoJ kept the deposit rate at minus 0.1% and its asset purchases at ¥80 trillion per year. It also pushed back the expected data for reaching its 2% inflation target.
The decision came a day after the Federal Reserve left interest rates unchanged close to zero on Wednesday and offered little guidance on future rate hikes.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) declined 0.80% and 1.39%, while Germany’s Commerzbank (DE:CBKG) and Detusche Bank retreated 0.90% and 2.09%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) slid 0.48%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) tumbled 1.05% and 1.15% respectively.
In earnings news, Sanofi (PA:SASY) reported a rise in first quarter sales and maintained its full-year guidance, but shares still plummeted 1.92%.
Spanish telecoms group Telefonica (MC:TEF) lost 0.84% after saying core profit declined by 6.7% in the first quarter.
Puma SE (DE:PUMG) reported a 3.7% increase in first quarter sales, but shares in the German sports goods maker still slipped 0.24%.
In London, FTSE 100 tumbled 1%, weighed by Rolls Royce (LON:RR) Holdings, whose shares plunged 2.09% after after the company's CEO challenged senior management to identify broader cost cuts earlier in the week.
Financial stocks added to losses, as Barclays (LON:BARC) slid 0.77% and Lloyds Banking (LON:LLOY) dropped 0.91%, while the Royal Bank of Scotland (LON:RBS) and HSBC Holdings (LON:HSBA) tumbled 1.23% and 1.96% respectively.
Earlier Friday, RBS said its losses widened to £968 million in the first quarter from £459 million in the same period last year.
In the mining sector, stocks were mixed. Randgold Resources (LON:RRS) rose 0.63% and Rio Tinto (LON:RIO) gained 0.56%, while Anglo American (LON:AAL) and Glencore (LON:GLEN) slipped 0.17% and 0.18% respectively.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.11% loss, S&P 500 futures a 0.16% fall, while the Nasdaq 100 futures indicated a 0.27% decline.