Investing.com - European stocks were lower on Tuesday, as investors remained cautious ahead of euro zone inflation data due later in the trading session and as expectations for a summer rate hike in the U.S. continued to weigh.
During European morning trade, the EURO STOXX 50 slipped 0.24%, France’s CAC 40 edged down 0.26%, while Germany’s DAX 30 fell 0.26%.
Equity markets were jittery after Federal Reserve Chair Janet Yellen said Friday it would be appropriate for the central bank to raise rates “gradually and cautiously” in the coming months if the economy and the labor market continue to pick up as expected.
Earlier Tuesday, Germany's Federal Statistics Office said the unemployment rate fell to a record low of 6.1% this month from 6.2% in April. Analysts expected the jobless rate to remain unchanged.
The number of unemployed people fell by 11,000 in May, compared to forecasts for a decline of 5,000.
Financial stocks were mostly lower. French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) rose 0.09% and 0.34%, but Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) declined 0.09% and 0.67%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 0.08% and 0.87% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) retreated 0.97% and 0.71%.
Elsewhere, Volkswagen (DE:VOWG_p) plummeted 2.02% after the carmaker reported 19.3% drop in first-quarter pretax profit.
In the same sector, the Peugeot family was reportedly planning to hold talks with the French government to discuss the future of its stake in Peugeot PSA Citroen. The news sent Peugeot SA (PA:PEUP) shares down 1.33%.
In London, commodity-heavy FTSE 100 dipped 0.06%, weighed by losses in the mining sector.
Shares in Fresnillo (LON:FRES) fell 0.29% and Rio Tinto (LON:RIO) declined 0.66%, while rivals Antofagasta (LON:ANTO) and Bhp Billiton (LON:BLT) lost 1.37% and 1.68% respectively.
EasyJet PLC (LON:EZJ) added to losses, with shares down 1.26% after the company announced that passengers will now be turned away if they arrive less than 30 minutes early.
Meanwhile, financial stocks were mixed. Barclays (LON:BARC) dipped 0.03% and the Royal Bank of Scotland (LON:RBS) slid 0.32%, while Lloyds Banking (LON:LLOY) rose 0.26% and HSBC Holdings (LON:HSBA) gained 0.46%.
In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.08% gain, S&P 500 futures a 0.02% uptick, while the Nasdaq 100 futures indicated a 0.17% rise.