Investing.com - European stock markets were sharply lower on Monday, as sustained concerns over the region’s debt crisis after last week’s economic summit weighed on market sentiment.
During European morning trade, the EURO STOXX 50 tumbled 1.54%, France’s CAC 40 fell 1.26%, while Germany’s DAX 30 declined 1.46%.
All European Union countries except the U.K. agreed on Friday to pursue stricter budget rules and to provide up to 200 billion euros in loans to the International Monetary Fund to help tackle the region’s financial crisis.
But markets remained cautious as the new fiscal union was not viewed as the decisive move needed to resolve the euro zone’s debt woes.
Investors were also jittery after Standard &Poor’s placed the credit ratings of 15 euro zone members on negative watch and said it would announce any ratings changes “as soon as possible” after Friday’s meeting.
Financial stocks were mixed as shares in Germany’s Deutsche Bank tumbled 1.61% and French lender BNP Paribas retreated 0.43%, while Credit Agricole climbed 0.63%.
Moody’s Investors Service downgraded France’s three largest banks Societe Generale, BNP Paribas and Credit Agricole by one notch on Friday, saying there was a “very high” probability that the French government would step in to support them if conditions worsened.
Meanwhile, the energy sector was sharply lower. French group EDF retreated 1.32% and Alstom plunged 1.36%, while Germany’s E.ON AG saw shares plummet 2.36%.
In London, FTSE 100 declined 0.63%, led by sharp losses in financial stocks.
Shares in the Royal Bank of Scotland plunged 2.27% and Lloyds Banking tumbled 2.14%, while HSBC Holdings and Barclays dropped 1.01% and 0.63% respectively.
Meanwhile, copper producer Xstrata was one of the top losers with shares plummeting 2.57%. Kazakhmys plunged 2.35%, while mining giants Rio Tinto and Bhp Billiton declined 0.93% and 1.17%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.72%, S&P 500 futures signaled a 0.83% decline, while the Nasdaq 100 futures indicated a 0.73% loss.
Earlier Monday, ratings agency Moody's warned that the debt crisis was still in a "critical" and "volatile" stage, adding that the region still faced increasing risks to cohesion.
During European morning trade, the EURO STOXX 50 tumbled 1.54%, France’s CAC 40 fell 1.26%, while Germany’s DAX 30 declined 1.46%.
All European Union countries except the U.K. agreed on Friday to pursue stricter budget rules and to provide up to 200 billion euros in loans to the International Monetary Fund to help tackle the region’s financial crisis.
But markets remained cautious as the new fiscal union was not viewed as the decisive move needed to resolve the euro zone’s debt woes.
Investors were also jittery after Standard &Poor’s placed the credit ratings of 15 euro zone members on negative watch and said it would announce any ratings changes “as soon as possible” after Friday’s meeting.
Financial stocks were mixed as shares in Germany’s Deutsche Bank tumbled 1.61% and French lender BNP Paribas retreated 0.43%, while Credit Agricole climbed 0.63%.
Moody’s Investors Service downgraded France’s three largest banks Societe Generale, BNP Paribas and Credit Agricole by one notch on Friday, saying there was a “very high” probability that the French government would step in to support them if conditions worsened.
Meanwhile, the energy sector was sharply lower. French group EDF retreated 1.32% and Alstom plunged 1.36%, while Germany’s E.ON AG saw shares plummet 2.36%.
In London, FTSE 100 declined 0.63%, led by sharp losses in financial stocks.
Shares in the Royal Bank of Scotland plunged 2.27% and Lloyds Banking tumbled 2.14%, while HSBC Holdings and Barclays dropped 1.01% and 0.63% respectively.
Meanwhile, copper producer Xstrata was one of the top losers with shares plummeting 2.57%. Kazakhmys plunged 2.35%, while mining giants Rio Tinto and Bhp Billiton declined 0.93% and 1.17%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.72%, S&P 500 futures signaled a 0.83% decline, while the Nasdaq 100 futures indicated a 0.73% loss.
Earlier Monday, ratings agency Moody's warned that the debt crisis was still in a "critical" and "volatile" stage, adding that the region still faced increasing risks to cohesion.