Investing.com - European stocks opened lower on Friday, as uncertainty over the timing of future U.S. rate hikes weighed and despite a sustained rebound in oil prices.
During European morning trade, the EURO STOXX 50 retreated 0.72%, France’s CAC 40 slumped 0.76%, while Germany’s DAX 30 dropped 0.69%.
European equities strengthened after the minutes of the Fed’s July policy meeting released on Wednesday showed that policymakers were still divided over the need to raise interest rates this year, lowering expectations for a September rate hike.
However, San Francisco Federal Reserve Bank President John Williams on Thursday expressed his support for a U.S. interest rate hike in coming months, saying that waiting too long could be costly for the economy.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) tumbled 1.15% and 1.24%, while Germany’s Deutsche Bank (DE:DBKGn) lost 1.10%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) retreated 0.78% and 1.33% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) declined 0.48% and 0.50%.
Meanwhile, energy-related stocks were mixed. Shares in French oil and gas major Total SA (PA:TOTF) slid 0.48% and Italy’s ENI (MI:ENI) lost 0.36%, while Norwegian rival Statoil (OL:STL) advanced 0.74%.
Bay.Motoren Werke AG ST (DE:BMWG) saw shares plummet 1.76% after the German carmaker was forced to recall 956 examples of the 2015 M5 sedans and M6 coupes, M6 convertibles, and M6 Gran Coupe sedans due to inadequate welding during manufacturing on the affected vehicles' driveshaft.
On the upside, Vonovia SE (DE:VNAn) climbed 0.90% after the housing association raised its full-year earnings forecast for a second time, citing the benefits of a string of acquisitions.
In London, FTSE 100 edged down 0.18%, weighed by Admiral Group (LON:ADML), whose shares tumbled 1.50% after analysts at RBC Capital Markets reiterated their ‘underperform’ rating on the stock.
Financial stocks were also broadly lower, as Lloyds Banking (LON:LLOY) dipped 0.06% and HSBC Holdings (LON:HSBA) declined 0.46%, while the Royal Bank of Scotland (LON:RBS) lost 0.48% and Barclays (LON:BARC) dropped 0.68%.
Mining stocks added to losses on the commodity-heavy index. Shares in Anglo American (LON:AAL) and Rio Tinto (LON:RIO) dropped 0.55% and 0.69% respectively, while Glencore (LON:GLEN) tumbled 1.01% and BHP Billiton (LON:BLT) plummeted 1.16%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.19% fall, S&P 500 futures showed a 0.16% slip, while the Nasdaq 100 futures indicated a 24% decline.