Investing.com - European stocks were sharply lower on Friday, as ongoing concers over the European banking sector weighed and as investors remained cautious ahead of a report on euro zone inflation due later in the session.
During European morning trade, the EURO STOXX 50 plummeted 2.01%, France’s CAC 40 tumbled 2.03%, while Germany’s DAX 30 lost 1.77%.
European equities were rattled by ongoing concerns over the health of Deutsche Bank (DE:DBKGn) following reports trading clients had withdrawn excess cash and positions held in the largest German lender due to recent sanctions
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) plunged 3.38% and 3.94%, while Germany’s Deutsche Bank and Commerzbank (DE:CBKG) lost 0.40 and 4.38%.
Commerzbank said on Thursday that it will be cutting thousands of jobs.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) dove 3.44% and 4.27% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) plummeted 3.97% and 4.05%.
Elsewhere, France's AXA SA (PA:AXAF) lost 3.07% and Germany's Allianz (DE:ALVG) tumbled 1.58% as the two companies continued talks regarding a deal with Standard Chartered (LON:STAN) that would allow the insurance firms to sell their products through the bank's Asian branches.
Telefonica (MC:TEF) added to losses, as shares plunged 4.29% after saying it had cancelled the planned listing of its Telxius business due to weak investor demand.
In London, FTSE 100 lost 1.19%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in HSBC Holdings (LON:HSBA) tumbled 1.59% and Lloyds Banking (LON:LLOY) plummeted 2.32%, while the Royal Bank of Scotland (LON:RBS) and Barclays (LON:BARC) sank 3.08% and 3.36% respectively.
In the mining sector, stocks were mixed on the commodity-heavy index. Rio Tinto (LON:RIO) declined 1.77% and Glencore (LON:GLEN) plunged 2.59%, while rivals Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) gained 0.82% and 1.05% respectively.
Meanwhile, Burberry Group PLC (LON:BRBY) rose 0.22% after analysts at RBC raised their price target on the stock.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.44% decline, S&P 500 futures showed a 0.44% loss, while the Nasdaq 100 futures indicated a 0.45% drop.