Investing.com – European stock markets were broadly lower on Wednesday, after a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy failed to ease concerns over the euro zone’s ongoing sovereign debt crisis.
During European morning trade, the EURO STOXX 50 dropped 0.8%, France’s CAC 40 slumped 0.3%, while Germany’s DAX 30 tumbled 1.3%.
In a meeting on Tuesday, German Chancellor Angela Merkel and French President Nicolas Sarkozy proposed a new council to improve the governance of the euro zone and planned to introduce a financial transaction tax in September.
But the two leaders fell short of increasing the region’s bailout fund, which many feel is inadequate should the debt crisis spread to Italy, Spain or France.
They also rejected issuing euro bonds, saying that the bonds will not solve the single currency bloc’s debt issues, disappointing investors who had been anticipating such an action.
Shares in exchange operators led losses amid speculation the proposed tax on financial transactions would weigh on earning prospects.
Shares in Deutsche Boerse retreated 2.65%, Paris-listed shares of NYSE Euronext sank 3.7%, while London Stock Exchange shares were down 3.9% on the FTSE.
Financial sector stocks were also lower, with Deutsche Bank dropping 2.1%, BNP Paribas shares down 1.3%, while peripheral lenders Unicredit and Banco Santander retreated 1.1% and 0.9% respectively.
Meanwhile, shares in Danish brewer Carlsberg plunged 18.1% after reporting a 22% decline in second quarter profit, prompting the company to lower its full-year earnings outlook.
In London, the FTSE 100 fell 0.95% as shares in brokerage firm Icap dropped 4.7% following the suggestion of a financial transaction tax, while rival Tullett Prebon saw shares sink 5.35%.
Meanwhile, U.K. lenders tracked their European counterparts lower, with Barclays dropping 3.8%, Royal Bank of Scotland falling 2.65%, while Lloyds Banking Group slumped 1.65%.
The outlook for U.S. equity markets was modestly upbeat ahead of earnings reports from farm equipment manufacturer Deere & Company, technology firm JDS Uniphase, as well as retail giants Target and Staples.
The Dow Jones Industrial Average futures pointed to a gain of 0.15%, the S&P 500 futures added 0.25%, while the Nasdaq 100 futures rose 0.2%.
Later in the day, the U.S. was to publish official data on producer price inflation, as well as government data on crude oil stockpiles.
During European morning trade, the EURO STOXX 50 dropped 0.8%, France’s CAC 40 slumped 0.3%, while Germany’s DAX 30 tumbled 1.3%.
In a meeting on Tuesday, German Chancellor Angela Merkel and French President Nicolas Sarkozy proposed a new council to improve the governance of the euro zone and planned to introduce a financial transaction tax in September.
But the two leaders fell short of increasing the region’s bailout fund, which many feel is inadequate should the debt crisis spread to Italy, Spain or France.
They also rejected issuing euro bonds, saying that the bonds will not solve the single currency bloc’s debt issues, disappointing investors who had been anticipating such an action.
Shares in exchange operators led losses amid speculation the proposed tax on financial transactions would weigh on earning prospects.
Shares in Deutsche Boerse retreated 2.65%, Paris-listed shares of NYSE Euronext sank 3.7%, while London Stock Exchange shares were down 3.9% on the FTSE.
Financial sector stocks were also lower, with Deutsche Bank dropping 2.1%, BNP Paribas shares down 1.3%, while peripheral lenders Unicredit and Banco Santander retreated 1.1% and 0.9% respectively.
Meanwhile, shares in Danish brewer Carlsberg plunged 18.1% after reporting a 22% decline in second quarter profit, prompting the company to lower its full-year earnings outlook.
In London, the FTSE 100 fell 0.95% as shares in brokerage firm Icap dropped 4.7% following the suggestion of a financial transaction tax, while rival Tullett Prebon saw shares sink 5.35%.
Meanwhile, U.K. lenders tracked their European counterparts lower, with Barclays dropping 3.8%, Royal Bank of Scotland falling 2.65%, while Lloyds Banking Group slumped 1.65%.
The outlook for U.S. equity markets was modestly upbeat ahead of earnings reports from farm equipment manufacturer Deere & Company, technology firm JDS Uniphase, as well as retail giants Target and Staples.
The Dow Jones Industrial Average futures pointed to a gain of 0.15%, the S&P 500 futures added 0.25%, while the Nasdaq 100 futures rose 0.2%.
Later in the day, the U.S. was to publish official data on producer price inflation, as well as government data on crude oil stockpiles.