Investing.com – European stocks traded lower on Monday, after U.S. President Donald Trump officially took office and spouted a protectionist policy in his inaugural speech.
Nearing midday in Europe, the benchmark Euro Stoxx 50 lost 0.40%, France’s CAC 40 fell 0.37%, and Germany’s DAX 30 traded down 0.38%.
Trump’s first address as U.S. President came after European markets closed on Friday, making Monday the first chance for equities in the region to respond to his remarks.
“We must protect our borders from the ravages of other countries making our products, stealing our companies, and destroying our jobs,” the new President proclaimed.
Despite the hardline protectionist rhetoric, Trump offered little clarity on fiscal policy, tax cuts and infrastructure spending, leaving market participants with uncertainty over what to expect in the near future.
In a sparse economic calendar, the euro zone will release its consumer confidence for January at 10:00AM ET (15:00GMT).
Additionally, European Central Bank (ECB) president Mario Draghi will deliver a speech on the occasion of the awarding of the Premio Camillo Cavour organized by Fondazione Camillo Cavour in Torino, Italy.
In M&A activity, Generali (MI:GASI) jumped 6% on a report from La Stampa that Intesa Sanpaolo (MI:ISP) and Allianz SE E (F:ALVB) were interested in the insurer, while Bovis Homes (LON:BVS) and Berkeley Group Holdings (LON:BKGH) rose 4% and 2%, respectively, on news of a possible merger released by the Sunday Times.
In earnings news, shares of Essentra PLC (LON:ESNT) slumped 5% as the plastic components manufacturer announced that its adjusted operating profit for 2016 would be at or below the lower end of its previous guidance.
Philips Lighting BV (AS:LIGHT) was also down more than 1% as fourth quarter earnings missed consensus.
Meanwhile, oil prices moved lower on Monday as prospects of rising U.S. production weighed on the market.
Oilfield services provider Baker Hughes said Friday that the number of rigs drilling for oil in the U.S. last week jumped by 29 to 551, the largest weekly increase since a recovery in the rig count began in June and the highest level in around 14 months.
Energy stocks were trading lower, as French oil and gas major Total SA (PA:TOTF) fell 0.48% , Italy’s ENI (MI:ENI) lose 0.39%, while Norwegian rival Statoil (OL:STL) traded down 0.69%.
Financial stocks also registered losses, as French lenders BNP Paribas (PA:BNPP) shed 0.95% and Societe Generale (PA:SOGN) fell 1.63%, while Germany’s Deutsche Bank (DE:DBKGn) lost 0.53% as Commerzbank (DE:CBKG) slumped 1.25%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) traded down 1.94% and 1.49%, respectively, while Spanish banks BBVA (MC:BBVA) lost 1.09% and Banco Santander (MC:SAN) fell 0.82%.
In London, the commodity-heavy FTSE 100 fell 0.54%, in part due to the stronger pound that both hurts British exporters and makes shares in the U.K. more expensive for holders of foreign currencies.
Shares in Glencore (LON:GLEN) jumped 1.71%, Anglo American (LON:AAL) traded up 2.06%, while less movement was seen in BHP Billiton (LON:BLT) up 0.04% and Rio Tinto (LON:RIO) off 0.03%.
Energy stocks traded lower, as BP (LON:BP) lost 1.05% and rival Royal Dutch Shell (LON:RDSa) fell 0.70%.
Financial stocks were broadly lower as shares in HSBC Holdings (LON:HSBA) shed 1.62% and the Royal Bank of Scotland (LON:RBS) traded down 2.17%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) fell 1.60% and 1.61%, respectively.
In the U.S., Wall Street pointed a lower open. The Dow Jones Industrial Average futures fell 0.10%, S&P 500 futures dropped 0.18%, while the Nasdaq 100 futures lost 0.23%.