Investing.com - European stocks were mixed to lower on Tuesday, as concerns over the debt crisis in the euro zone continued to weigh on market sentiment, while investors eyed talks between German Chancellor Angela Merkel and European Central Bank President Mario Draghi later in the day.
During European afternoon trade, the EURO STOXX 50 slipped 0.13%, France’s CAC 40 declined 0.18%, while Germany’s DAX 30 fell 0.12%.
Market sentiment weakened amid German media reports that lawyers for the German central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge.
Investors also remained cautious amid lingering uncertainty over whether Spain will request a full scale sovereign bailout.
Meanwhile, concerns over Greece continued to weigh, as Athens prepared to present a package of spending cuts at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.
Financial stocks were mixed as France saw Societe Generale gain 0.34% and BNP Paribas fall 0.18%, while German lenders Deutsche Bank and Commerzbank retreated 0.98% and 1.98% respectively.
Separately, Goldman Sachs downgraded Credit Agricole to "neutral" from "buy".
In Spain, Banco Santander rose 0.32% and BBVA added 0.31%, while Italy's Intesa Sanpaolo and Unicredit dropped 0.64% and 0.93%.
Meanwhile, auto stocks remained sharply lower, as shares in German manufacturers Volkswagen and Daimler tumbled 3.14% and 2.72%, while French groups Renault and Peugeot lost 1.99% and 3.71% respectively.
In London, commodity-heavy FTSE 100 added 0.10%, although mining stocks pushed broadly lower, while data showed that mortgage approvals in the U.K. rose more-than-expected in August.
Copper producers Xstrata and Kazakhmys declined 1.89% and 0.56%, while steel manufacturer Evraz dove 3.73%.
Mining giants Rio Tinto and BHP Billiton were also on the downside, with shares retreating 1.12% and 0.49%, while Anglo American trimmed earlier gains, with shares up 0.04%.
Elsewhere, U.K. lenders remained mixed. Shares in Barclays climbed 1.36% and Lloyds Banking advanced 0.95%, while HSBC Holdings and the Royal Bank of Scotland fell 0.21% and 0.81%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.20% rise, S&P 500 futures signaled a 0.17% gain, while the Nasdaq 100 futures indicated a 0.27% increase.
Also Tuesday, the German GfK consumer sentiment index was unchanged at 5.9 for October, in line with expectations. The economic expectations component of the index rose to minus 17.2 points in September from minus 18.9 points in August.
Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.
During European afternoon trade, the EURO STOXX 50 slipped 0.13%, France’s CAC 40 declined 0.18%, while Germany’s DAX 30 fell 0.12%.
Market sentiment weakened amid German media reports that lawyers for the German central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge.
Investors also remained cautious amid lingering uncertainty over whether Spain will request a full scale sovereign bailout.
Meanwhile, concerns over Greece continued to weigh, as Athens prepared to present a package of spending cuts at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.
Financial stocks were mixed as France saw Societe Generale gain 0.34% and BNP Paribas fall 0.18%, while German lenders Deutsche Bank and Commerzbank retreated 0.98% and 1.98% respectively.
Separately, Goldman Sachs downgraded Credit Agricole to "neutral" from "buy".
In Spain, Banco Santander rose 0.32% and BBVA added 0.31%, while Italy's Intesa Sanpaolo and Unicredit dropped 0.64% and 0.93%.
Meanwhile, auto stocks remained sharply lower, as shares in German manufacturers Volkswagen and Daimler tumbled 3.14% and 2.72%, while French groups Renault and Peugeot lost 1.99% and 3.71% respectively.
In London, commodity-heavy FTSE 100 added 0.10%, although mining stocks pushed broadly lower, while data showed that mortgage approvals in the U.K. rose more-than-expected in August.
Copper producers Xstrata and Kazakhmys declined 1.89% and 0.56%, while steel manufacturer Evraz dove 3.73%.
Mining giants Rio Tinto and BHP Billiton were also on the downside, with shares retreating 1.12% and 0.49%, while Anglo American trimmed earlier gains, with shares up 0.04%.
Elsewhere, U.K. lenders remained mixed. Shares in Barclays climbed 1.36% and Lloyds Banking advanced 0.95%, while HSBC Holdings and the Royal Bank of Scotland fell 0.21% and 0.81%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.20% rise, S&P 500 futures signaled a 0.17% gain, while the Nasdaq 100 futures indicated a 0.27% increase.
Also Tuesday, the German GfK consumer sentiment index was unchanged at 5.9 for October, in line with expectations. The economic expectations component of the index rose to minus 17.2 points in September from minus 18.9 points in August.
Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.