Investing.com - European stocks traded mixed on Monday as the region’s financial sector came under pressure from developments in Italy and German business confidence soared.
In mid-morning European trade, the Euro Stoxx 50 gained 0.09%, France’s CAC 40 lost 0.20%, while Germany’s DAX 30 slipped 0.01%.
Italy’s banks were under watch with shares in Banca Monte dei Paschi di Siena (MI:BMPS) tumbling around 7% on the first day of its €5 billion ($5.2 billion) cash call in a final effort to avoid a state bailout. The bank announced Sunday that the offer to institutional investors would be open until Thursday, while the offer to retail investors would close on Wednesday.
Deutsche Bank (DE:DBKGn) contributed to the risk-off sentiment in the European financial sector, leading both the German DAX and the benchmark Euro Stoxx 50 lower after the lender agreed to pay more than $40 million in a settlement to end government investigations into allegations of misinforming clients with regard to dark pool private trading venues.
Though outside the region, also dampening sentiment in the sector, was Ukraine’s announcement that it had declared the country’s largest bank insolvent.
On a light economic calendar day, German business confidence soared in December, hitting its highest level since February 2014.
Meanwhile, oil prices traded higher on Tuesday as investors bet that there would be a high level of compliance from major oil producers to cut their levels of production starting in January.
Energy stocks traded mixed, as French oil and gas major Total SA (PA:TOTF) slipped 0.21% but Italy’s ENI (MI:ENI) advanced 0.13%, while Norwegian rival Statoil (OL:STL) gave up 0.19%.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) fell 0.28% and 0.19%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 1.53% and 2.43%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) slumped 1.23% but Unicredit (MI:CRDI) gained 0.43%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) lost 0.69% and 0.66%, respectively.
In London, the commodity-heavy FTSE 100 slipped 0.05%, as shares in Glencore (LON:GLEN) gained 0.81% but Anglo American (LON:AAL) and Rio Tinto (LON:RIO) fell 1.15% and 1.08%, respectively, while BHP Billiton (LON:BLT) dropped 0.15%.
Energy stocks added some gains, as BP (LON:BP) advanced 0.62% and rival Royal Dutch Shell (LON:RDSa) rose 0.30%.
Financial stocks were broadly lower, with shares in HSBC Holdings (LON:HSBA) down 1.30% and the Royal Bank of Scotland (LON:RBS) slipping 0.20%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) lost 2.04% and 0.78% respectively.
In the U.S., equity markets pointed to a higher open while investors waited for a reading on the health of country’s service sector. The Dow Jones Industrial Average futures pointed to a 0.18% rise, S&P 500 futures a 0.13% gain, while the Nasdaq 100 futures indicated a 0.12% increase.