Investing.com - European markets opened mostly lower on Tuesday, amid sustained geopolitical concerns and as Catalonia was set to officially declare its independence from the rest of Spain later in the day, heightening local tensions.
The EURO STOXX 50 eased 0.07%, France’s CAC 40 inched up 0.06%, while Germany’s DAX 30 dipped 0.05% and Spain's IBEX 35 was down 0.27% by 03:45 a.m. ET (07:45 GMT).
Investors remained cautious following reports last week that North Korea was preparing a long-range missile test.
There were concerns that Pyongyang could mark Tuesday, when it celebrates the founding of its ruling party, with some sort of provocation.
Meanwhile, diplomatic tensions between the U.S. and Turkey persisted following the suspension of visa services between the two countries, while Iran vowed a "crushing" response should Washington deem the Revolutionary Guards a terrorist group.
In Spain, the ruling Spanish Partido Popular warned Catalan leader Carles Puigdemont on Monday that he could be thrown in jail if he followed through with a planned declaration of independence on Tuesday.
In reaction to recent developments, a number of Spanish companies said they were pulling out of Catalonia, including real estate firm Inmobiliaria Colonial SA (MC:COL) and infrastructure company Abertis Infr (MC:ABE), whose shares were down 1.80% and 0.03% in European morning trade.
Spanish lenders Banco de Sabadell and Caixabank SA (MC:CABK), down 0.74% and 0.36% respectively, also announced that theywould be relocating.
Elsewhere in Europe, financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) lost 0.28% and 1.02%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) fell 0.22% and 1.35%.
Italian banls Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) tumbled 1.03% and 0.75% respectively.
On the upside, LVMH Moet Hennessy Louis Vuitton SE (PA:LVMH) rallied 1.96% after the world's biggest luxury goods company reported higher-than-expected revenue growth for the third quarter.
In London, FTSE 100 edged up 0.16%, boosted by Capita PLC (LON:CPI), whose shares surged 3.02% after the company appointed Jonathan Lewis as CEO on Tuesday. Lewis is set to take up the role on December 1.
Financial stocks added to gains, with Lloyds Banking (LON:LLOY) advanced 0.81% and Barclays (LON:BARC) jumped 0.96%, while the Royal Bank of Scotland (LON:RBS) and HSBC Holdings (LON:HSBA) rallied 1.06% and 1.07% respectively.
Meanwhile, mining stocks were mixed on the commodity-heavy index. Shares in Glencore (LON:GLEN) dipped 0.04% and Rio Tinto (LON:RIO) slid 0.30%, while BHP Billiton (LON:BLT) gained 0.55% and Antofagasta (LON:ANTO) climbed 1.32%.
In other news, UK Prime Minister Theresa May told parliament on Monday that there would be a two-year transition period following Britain's exit from the European Union.
May also said that preparations were underway in the case Britain and the EU were unable to reach a deal on their future trade relationship.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.13% rise, S&P 500 futures signaled a 0.10% gain, while the Nasdaq 100 futures indicated a 0.15% increase.