Investing.com - European stocks edged lower on Wednesday, as concerns over the outcome of the U.S. budget impasse and a potential sovereign default continued to weigh on market sentiment.
During European morning trade, the EURO STOXX 50 fell 0.21%, France’s CAC 40 declined 0.58%, while Germany’s DAX 30 slipped 0.09%.
On Tuesday, Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
Financial stocks were mixed, as BNP Paribas slipped 0.18% and Societe Generale inched up 0.05%, while Germany's Deutsche Bank gained 0.77%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA added 0.14% and 0.36% respectively, while Italy's Unicredit and Intesa Sanpaolo climbed 0.82% and 1.93%.
Elsewhere, Danone plummeted 3.36% after posting the slowest sales growth in 16 quarters and lowering its full-year forecast.
Adding to losses, LVMH Moet Hennessy Louis Vuitton dove 5.07% as the luxury-goods company reported revenue for the third quarter that fell short of estimates.
In London, commodity-heavy FTSE 100 slipped 0.24%, weighed by sharp losses in the mining sector.
Mining giants Rio Tinto and BHP Billiton declined 0.62% and 0.79% respectively, while Glencore Xstrata and Polymetal plunged 1.35% and 2.47%.
Meanwhile, financial stocks were mixed. HSBC Holdings slid 0.41% and the Royal Bank of Scotland tumbled 1.11%, while Lloyds Banking and Barclays rose 0.03% and 0.36%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.41% increase, S&P 500 futures signaled a 0.48% gain, while the Nasdaq 100 futures indicated a 0.27% rise.
Later in the day, the euro zone was to produce reports on consumer prices and the trade balance.
During European morning trade, the EURO STOXX 50 fell 0.21%, France’s CAC 40 declined 0.58%, while Germany’s DAX 30 slipped 0.09%.
On Tuesday, Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
Financial stocks were mixed, as BNP Paribas slipped 0.18% and Societe Generale inched up 0.05%, while Germany's Deutsche Bank gained 0.77%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA added 0.14% and 0.36% respectively, while Italy's Unicredit and Intesa Sanpaolo climbed 0.82% and 1.93%.
Elsewhere, Danone plummeted 3.36% after posting the slowest sales growth in 16 quarters and lowering its full-year forecast.
Adding to losses, LVMH Moet Hennessy Louis Vuitton dove 5.07% as the luxury-goods company reported revenue for the third quarter that fell short of estimates.
In London, commodity-heavy FTSE 100 slipped 0.24%, weighed by sharp losses in the mining sector.
Mining giants Rio Tinto and BHP Billiton declined 0.62% and 0.79% respectively, while Glencore Xstrata and Polymetal plunged 1.35% and 2.47%.
Meanwhile, financial stocks were mixed. HSBC Holdings slid 0.41% and the Royal Bank of Scotland tumbled 1.11%, while Lloyds Banking and Barclays rose 0.03% and 0.36%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.41% increase, S&P 500 futures signaled a 0.48% gain, while the Nasdaq 100 futures indicated a 0.27% rise.
Later in the day, the euro zone was to produce reports on consumer prices and the trade balance.