Investing.com - European stocks opened lower on Friday, after the release of mixed service sector and manufacturing activity reports from France and Germany overshadowed comments by European Central Bank President Mario Draghi.
During European morning trade, the EURO STOXX 50 declined 0.31%, France’s CAC 40 slid 0.36%, while Germany’s DAX 30 fell 0.24%.
Research group said its German manufacturing purchasing managers’ index rose to 51.9 in April from 50.7 the previous month, beating expectations for a fall to 51.0.
However, the German services PMI fell to 54.9 this month from 55.1 in March, compared to expectations for an uptick to 55.2.
Markit’s French manufacturing PMI fell to 48.3 in April from 49.6 the previous month, confounding expectations for a rise to 49.8.
The French services PMI rose to 50.8 this month from 49.9 in March, exceeding expectations for an increase to 50.2.
The data came a day after ECB President Draghi said the bank stands ready to use “all instruments available,” including further interest rate cuts to ensure the inflation rate returns to its target.
The ECB held the benchmark interest rate at a record low zero, in a widely anticipated decision.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.61% and 1.31%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) rallied 1.44% and 1.76%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 0.86% and 1.25% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) added 0.05% and 0.23%.
On the downside, Volkswagen (DE:VOWG_p) plummeted 2.38% amid reports the carmaker reached a framework agreement on Thursday with class action plaintiffs in U.S. court proceedings for a "comprehensive settlement," regarding the company’s cheating on diesel emissions tests in the U.S.
In London, commodity-heavy FTSE 100 dropped 0.57%, weighed by sharp losses in the mining sector.
Shares in Antofagasta (LON:ANTO) tumbled 1.69% and Glencore (LON:GLEN) lost 1.78%, while Anglo American (LON:AAL) and Rio Tinto (LON:RIO) plummeted 2.29% and 2.31% respectively.
Financial stocks added to losses, as Barclays (LON:BARC) dipped 0.01% and Lloyds Banking (LON:LLOY) edged down 0.10%, while HSBC Holdings (LON:HSBA) declined 0.42%. The Royal Bank of Scotland (LON:RBS) overperformed, with shares gaining 0.39%.
Elsewhere, Barratt Developments PLC (LON:BDEV) jumped 1.18% and J Sainsbury PLC (LON:SBRY) rallied 1.42% after Deutsche Bank reiterated its ‘buy’ rating on the first stock and raised the second’s rating to ‘buy’.
In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures a 0.10% rise, while the Nasdaq 100 futures indicated a 0.09% downtick.