Investing.com - European stocks were lower on Thursday, as concerns over a possible Greek default persisted despite Wednesday rumors of a potential deal with the country's creditors.
During European morning trade, the EURO STOXX 50 declined 0.62%, France’s CAC 40 dropped 0.58%, while Germany’s DAX 30 slid 0.43%.
European markets had found some support after the Greek government said on Wednesday that it had started drafting an agreement with its international creditors, signaling progress in long-running negotiations to unlock more financial aid.
However, European officials played down suggestions of a deal, saying negotiators still had much work to do before reaching an agreement.
Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) dropped 0.52% and 0.60%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) fell 0.22% and 0.71%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) declined 0.48% and 0.60% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) slid 0.61% and 0.77%.
Elsewhere, Ericsson (ST:ERICAs) saw shares rise 0.34% after saying it is open to a transaction to counter a move by rivals Nokia Oyj (HEL:NOK1V) and Alcatel-Lucent (PARIS:ALUA) to combine and overtake the Swedish company as a leading provider of network equipment.
In London, the commodity-heavy FTSE 100 fell 0.26%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LONDON:RIO) tumbled 1.32% and Bhp Billiton (LONDON:BLT) lost 1.82%, while rivals Glencore Xstrata (LONDON:GLEN) and Anglo American (LONDON:AAL) plummeted 1.46% and 2.79% respectively.
Financial stocks were also broadly lower, as Lloyds Banking (LONDON:LLOY) slipped 0.13% and the Royal Bank of Scotland (LONDON:RBS) dropped 0.48%, while Barclays (LONDON:BARC) declined 0.54% and HSBC Holdings (LONDON:HSBA) retreated 1.11%.
Tate & Lyle (LONDON:TATE) added to losses, with shares down 2.50%, after forecasting pretax profit next year will be similar to 2015 numbers.
On the upside, Sports Direct (LONDON:SPD) surged 3.64% after the retailer said annual profit beat forecasts.
Kingfisher (LONDON:KGF) was also higher, with shares rallying 3.11% after the home-improvement retailer said first-quarter retail profit met analysts' expectations, thanks to growing sales in the U.K.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.25% decline, S&P 500 futures signaled a 0.23% loss, while the Nasdaq 100 futures indicated a 0.16% fall.
Later in the day, the U.S. was to release the weekly report on unemployment claims, as well as data on pending home sales.