Investing.com - European stocks slipped lower on Tuesday, as concerns over ongoing tensions in Ukraine continued to weigh on market sentiment, while investors eyed the release of German economic sentiment data later in the trading session.
During European morning trade, the DJ Euro Stoxx 50 shed 0.30%, France’s CAC 40 fell 0.18%, while Germany’s DAX slid 0.32%.
Market participants were eyeing a meeting scheduled on Thursday in Geneva between the U.S., the European Union, Ukraine and Russia, with hopes it will bring a political resolution to escalating tensions in Eastern Europe.
The U.S. and the E.U. said that they are considering further sanctions against Moscow after pro-Russian separatists on Monday ignored an ultimatum to leave occupied government buildings in eastern Ukraine.
European equities had found support on Monday after European Central Bank President Mario Draghi said a further appreciation in the euro would trigger additional monetary easing to keep inflation from falling too low.
Financial stocks were broadly lower, as French lenders BNP Paribas (BNPP.PAR) and Societe Generale (SOGN.PAR) declined 0.22% and 0.57%, while Germany's Deutsche Bank (DBKGn.XETRA) retreated 0.78%.
Among peripheral lenders, Italy's Unicredit (CRDI.MILAN) and Intesa Sanpaolo (ISP.MILAN) tumbled 1.38% and 1.71% respectively, while Spanish banks BBVA (BBVA.MADRID) and Banco Santander (SAN.MADRID) dropped 0.90% and 1.18%.
Elsewhere, Nestle (NESN.SIX) added 0.15%, after the food company reported said sales grew 4.2% in the three months through March, matching analysts' estimates but still posting its slowest first-quarter sales growth since 2009.
In London, commodity-heavy FTSE 100 edged down 0.15%, weighed by sharp losses in the mining sector.
Shares in Glencore Xstrata (GLEN.LSE) tumbled 1.53% and Rio Tinto (RIO.LSE) retreated 1.63%, while rivals Bhp Billiton (BLT.LSE) and Randgold Resources (RRS.LSE) lost 1.20% and 0.95% respectively.
Financial stocks were also mostly lower, as Lloyds Banking (LLOY.LSE) and Barclays (BARC.LSE) fell 0.25% and 0.27%, while the Royal Bank of Scotland (RBS.LSE) slid 0.36% and HSBC Holdings (HSBA.LSE) dropped 0.52%.
Diageo (DGE.LSE) added to losses, down 1.02%, after the company offered to raise its stake in United Spirits (UNSP.NS) The maker of alcoholic beverages, which currently holds 29% of Bangalore, India-based United Spirits, reportedly offered $1.9 billion for a further 26% stake in the company.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures pointed to a 0.04% loss, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.03% uptick.
Later in the day, the ZEW Institute was to release its closely watched report on German economic sentiment, while the U.S. was to produce data on consumer inflation. In addition, Federal Reserve Chair Janet Yellen was set to speak.