Investing.com - European stocks were sharply lower on Wednesday, as Chinese service sector data added to concern's over a slowdown in the world's second largest economy, while ongoing uncertainty over the future of the Federal Reserve's stimulus program also weighed.
During European morning trade, the EURO STOXX 50 plunged 1.76%, France’s CAC 40 retreated 1.43%, while Germany’s DAX 30 plummeted 1.45%.
Earlier Wednesday, a government report showed that China’s non-manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May.
In the euro zone, Markit research group said Spain's services PMI rose unexpectedly to 47.8 last month, from a reading of 47.3 in May, confounding expectations for a rise to 47.5.
Meanwhile, investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Fed may decide to unwind its USD85 billion-a-month stimulus program.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale plummeted 2.82% and 3.26%, while Germany's Deutsche Bank tumbled 3.13%.
Peripheral lenders added to losses, with Spanish banks Banco Santander and BBVA plunged 3.56% and 3.69% respectively, while Italy's Intesa Sanpaolo and Unicredit retreated 2.70% and 3.69%.
Elsewhere, Air France, Europe’s largest airline, and Deutsche Lufthansa declined 2.36% and 2.09% respectively, as oil prices rallied over 1%.
In London, commodity-heavy FTSE 100 tumbled 1.18%, weighed by sharp losses in mining stocks.
Mining giants Rio Tinto and BHP Billiton plunged 3.10% and 3.90%, while Anglo American dove 4.77% and Polymetal sank 5.38%.
U.K. lenders were also sharply lower, as shares on Lloyds Banking plummeted 1.32% and the Royal Bank of Scotland retreated 1.63%, while HSBC Holdings and Barclays lost 1.71% and 2.58% respectively.
Standard & Poor's cut its long-term counterparty credit ratings for Barclays, as well as Deutsche Bank and Credit Suisse, to A from A+, saying new rules and "uncertain market conditions" threaten their business.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.42% decline, S&P 500 futures signaled a 0.50% drop, while the Nasdaq 100 futures indicated a 0.56% loss.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, and data on the trade balance.
During European morning trade, the EURO STOXX 50 plunged 1.76%, France’s CAC 40 retreated 1.43%, while Germany’s DAX 30 plummeted 1.45%.
Earlier Wednesday, a government report showed that China’s non-manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May.
In the euro zone, Markit research group said Spain's services PMI rose unexpectedly to 47.8 last month, from a reading of 47.3 in May, confounding expectations for a rise to 47.5.
Meanwhile, investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Fed may decide to unwind its USD85 billion-a-month stimulus program.
Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale plummeted 2.82% and 3.26%, while Germany's Deutsche Bank tumbled 3.13%.
Peripheral lenders added to losses, with Spanish banks Banco Santander and BBVA plunged 3.56% and 3.69% respectively, while Italy's Intesa Sanpaolo and Unicredit retreated 2.70% and 3.69%.
Elsewhere, Air France, Europe’s largest airline, and Deutsche Lufthansa declined 2.36% and 2.09% respectively, as oil prices rallied over 1%.
In London, commodity-heavy FTSE 100 tumbled 1.18%, weighed by sharp losses in mining stocks.
Mining giants Rio Tinto and BHP Billiton plunged 3.10% and 3.90%, while Anglo American dove 4.77% and Polymetal sank 5.38%.
U.K. lenders were also sharply lower, as shares on Lloyds Banking plummeted 1.32% and the Royal Bank of Scotland retreated 1.63%, while HSBC Holdings and Barclays lost 1.71% and 2.58% respectively.
Standard & Poor's cut its long-term counterparty credit ratings for Barclays, as well as Deutsche Bank and Credit Suisse, to A from A+, saying new rules and "uncertain market conditions" threaten their business.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.42% decline, S&P 500 futures signaled a 0.50% drop, while the Nasdaq 100 futures indicated a 0.56% loss.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, and data on the trade balance.