Investing.com - European stock markets were sharply lower on Tuesday, as investors remained concerned over the euro zone's debt crisis following strong rises in Italian and Spanish bond yields.
During European morning trade, the EURO STOXX 50 plummeted 1.83%, France’s CAC 40 tumbled 1.63%, while Germany’s DAX 30 plunged 1.86%.
Market sentiment was hit after a rise in Italian and Spanish bond yields underscored the challenges facing European leaders as they continue to struggle to contain the region's debt crisis.
Yields at a EUR3 billion five-year Italian bond sale on Monday hit euro-era highs of 6.29 percent, just a day after former European Commissioner Mario Monti was named to lead the country, while the yield on 10-year Spanish government bonds rose above 6% for the first time since August.
Meanwhile, German Chancellor Angela Merkel’s ruling CDU party approved a measure that would allow countries to leave the 17-nation euro zone if they choose, but remain within the European Union.
Financial stocks were broadly lower, led by Italian lenders as shares in Unicredit and Intesa Sanpaolo plunged 6.98% and 4.07% respectively.
France's two largest banks BNP Paribas and Credit Agricole plummeted 5.13% and 4.12%, closely followed by German lenders Deutsche Bank with shares tumbling 2.79% and Commerzbank, dropping 2.02%.
Elsewhere, Italy's second largest industrial group, Finmeccanica saw shares sink 14.18% after announcing that it will sell EUR1 billion in assets due to loss predictions for this year.
Also in company news, shares in Kabel Deutscheland, Germany's largest cable operator declined 3.17% after predicting sales growth in 2011 at the lower end of its forecast range of 6.25% to 6.75%.
In London, FTSE 100 slumped 0.70% as U.K. lenders tracked their European counterparts lower.
Shares in Barclays tumbled 3.26% and the Royal Bank of Scotland dropped 2.55%, while HSBC Holdings and Lloyds Banking saw shares decline 2.28% and 2.06% respectively.
The energy sector contributed to losses, as mining giants Rio Tinto and Bhp Billiton dipped 0.41% and 0.76%, while British Petroleum slumped 0.52%.
Meanwhile, copper producers Xstrata and Kazakhmys declined 2.28% and 1.26% respectively.
Elsewhere, telecommunications firm Cable and Wireless Worldwide plunged 9.97% as the company suspended dividend payments and named Gavin Darby as chief executive officer.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.52%, S&P 500 futures signaled a 0.63% drop, while the Nasdaq 100 futures indicated a 0.59% decline.
Earlier Tuesday, official data showed that Germany’s gross domestic product rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.
During European morning trade, the EURO STOXX 50 plummeted 1.83%, France’s CAC 40 tumbled 1.63%, while Germany’s DAX 30 plunged 1.86%.
Market sentiment was hit after a rise in Italian and Spanish bond yields underscored the challenges facing European leaders as they continue to struggle to contain the region's debt crisis.
Yields at a EUR3 billion five-year Italian bond sale on Monday hit euro-era highs of 6.29 percent, just a day after former European Commissioner Mario Monti was named to lead the country, while the yield on 10-year Spanish government bonds rose above 6% for the first time since August.
Meanwhile, German Chancellor Angela Merkel’s ruling CDU party approved a measure that would allow countries to leave the 17-nation euro zone if they choose, but remain within the European Union.
Financial stocks were broadly lower, led by Italian lenders as shares in Unicredit and Intesa Sanpaolo plunged 6.98% and 4.07% respectively.
France's two largest banks BNP Paribas and Credit Agricole plummeted 5.13% and 4.12%, closely followed by German lenders Deutsche Bank with shares tumbling 2.79% and Commerzbank, dropping 2.02%.
Elsewhere, Italy's second largest industrial group, Finmeccanica saw shares sink 14.18% after announcing that it will sell EUR1 billion in assets due to loss predictions for this year.
Also in company news, shares in Kabel Deutscheland, Germany's largest cable operator declined 3.17% after predicting sales growth in 2011 at the lower end of its forecast range of 6.25% to 6.75%.
In London, FTSE 100 slumped 0.70% as U.K. lenders tracked their European counterparts lower.
Shares in Barclays tumbled 3.26% and the Royal Bank of Scotland dropped 2.55%, while HSBC Holdings and Lloyds Banking saw shares decline 2.28% and 2.06% respectively.
The energy sector contributed to losses, as mining giants Rio Tinto and Bhp Billiton dipped 0.41% and 0.76%, while British Petroleum slumped 0.52%.
Meanwhile, copper producers Xstrata and Kazakhmys declined 2.28% and 1.26% respectively.
Elsewhere, telecommunications firm Cable and Wireless Worldwide plunged 9.97% as the company suspended dividend payments and named Gavin Darby as chief executive officer.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.52%, S&P 500 futures signaled a 0.63% drop, while the Nasdaq 100 futures indicated a 0.59% decline.
Earlier Tuesday, official data showed that Germany’s gross domestic product rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.