Investing.com - European stocks opened sharply lower on Friday, after the Federal Reserve's decision to hold interest rates this month sparked fresh concerns over the health of the global economy.
During European morning trade, the EURO STOXX 50 lost 1.18%, France’s CAC 40 plummeted 1.15%, while Germany’s DAX 30 tumbled 1.15%.
Marketes were jittery after the Fed kept interest rates unchanged on Thursday, although the central bank left open the possibility of a rate hike later this year.
Speaking after the rate statement, Fed Chair Janet Yellen said global economic developments played a major part in the central bank's decision.
In deciding when to raise interest rates, the Fed repeated it wanted to see "some further improvement in the labor market" and be "reasonably confident" that inflation will increase.
Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) plummeted 1.98% and 2.19%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) lost 1.84% and 2.17%.
Deutsche Bank was in the spotlight following reports the German lender plans to close its Russian corporate banking and securities business to cut costs and deploy less capital.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) tumbled 1.89% and 2% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) retreated 0.50% and 1.54%.
Elsewhere, German utility RWE AG (XETRA:RWEG) plunged 1.52% after saying it won't sell a stake to an outside investor.
In London, FTSE 100 slid 0.61%, as U.K. lenders tracked their European counterparts lower.
Shares in Lloyds Banking (LONDON:LLOY) and HSBC Holdings (LONDON:HSBA) tumbled 0.96% and 1.10% respectively, while the Royal Bank of Scotland (LONDON:RBS) lost 1.35% and Barclays (LONDON:BARC) plunged 2.03%.
Rolls-Royce (LONDON:RR) was also on the downside, with shares plummeting 1.55%, amid reports the luxury automaker may consider building an electric car.
Meanwhile, mining stocks were mixed. Rio Tinto (LONDON:RIO) slipped 0.28% and Glencore (LONDON:GLEN) retreated 0.79%, while Bhp Billiton (LONDON:BLT) advanced 0.77% and Fresnillo (LONDON:FRES) surged 2.80%.
In the U.S., equity markets pointed to a steady to moderately higher open. The Dow Jones Industrial Average futures pointed to a 0.09% gain, S&P 500 futures signaled a 0.09% rise, while the Nasdaq 100 futures indicated a 0.01% uptick.