Investing.com - European stocks were sharply lower on Wednesday, weighed by tumbling oil prices and as investors awaited the release of euro zone inflation due later in the trading session.
During European morning trade, the EURO STOXX 50 slid 0.69%, France’s CAC 40 retreated 0.57%, while Germany’s DAX 30 dropped 0.70%.
The continuing decline in oil prices added to fears over the global economic outlook and the impact on weakening emerging market economies and their currencies.
Meanwhile, investors continued to focus on developments in Greece after a surprise decision by the government to bring forward a parliamentary vote for president to this week.
Greek Prime Minister Antonis Samaras was to put forward his candidate, Stavros Dimas, for the presidency in the first of three possible votes in parliament. If Dimas is not elected, two more rounds of voting will be held on December 23 and 29.
Russia also remained in the spotlight after the ruble fell to fresh record lows against the dollar on Tuesday when a surprise interest rate hike failed to ease selling pressure on the currency from falling oil and western sanctions.
Energy stocks were broadly lower, as Italian group Eni lost 1.09% and France's Total SA (PARIS:TOTF) tumbled 1.22%, while German rival RWE AG (XETRA:RWEG) plummeted 1.34%.
Spanish oil and gas giant Repsol was down 1.37% one day after agreeing to buy Canada's Talisman Energy Inc. (TO:TLM) for $8.3 billion.
Financial stocks added to losses, as French lender Societe Generale (PARIS:SOGN) tumbled 1.32%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) fell 0.04% and 0.77%.
Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo plunged 1.09% and 2.17% respectively, while Spanish banks Banco Santander and BBVA retreated 1.14% and 1.50%.
Elsewhere, Philips Kon (AMS:PHG) saw shares dive 2.79% after it agreed to buy Volcano Corporation (NASDAQ:VOLC) for $1 billion.
In London, FTSE 100 declined 0.70%, as U.K. lenders tracked their European counterparts lower.
Shares in the Royal Bank of Scotland (LONDON:RBS) declined 0.40% and Lloyds Banking (LONDON:LLOY) slid 0.64%, while HSBC Holdings (LONDON:HSBA) and Barclays retreated 0.81% and 0.89% respectively.
Oil and gas major BP Plc (LONDON:BP) added to losses, down 0.49%, while provider of oilfield services Petrofac saw shares plummet 2.18%.
Meanwhile, mining stocks were mixed. Glencore Xstrata Plc (LONDON:GLEN) dropped 0.47% and BHP Billiton lost 0.61%, while Rio Tinto gained 0.51% and Polymetal Intl Plc (LONDON:POLYP) advanced 0.83%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.46% rise, S&P 500 futures signaled a 0.49% increase, while the Nasdaq 100 futures indicated a 0.44% gain.
Later in the day, the euro zone was to produce revised data on consumer price inflation. The U.S. was to release data on consumer inflation and the current account.