Investing.com - European stocks were mostly lower on Monday, weighed by the financial sector but losses were expected to remain limited as global equities continued to recover from Britain’s decision to leave the European Union.
During European morning trade, the EURO STOXX 50 slipped 0.15%, France’s CAC 40 fell 0.24%, while Germany’s DAX 30 edged down 0.15%.
European equities were boosted after Bank of England Governor Mark Carney indicated late last week that more stimulus may be needed over the summer, sparking expectations for an upcoming rate cut.
Separately, the Financial Times reported on Sunday that U.K. Chancellor George Osborne is planning to cut corporation tax to less than 15% in a move to offset the shock to investors of the country's decision to leave the EU.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) tumbled 1.55% and 1.38%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) plummeted 1.70% and 2.45%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) lost 3.04% and 2.45% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) declined 0.57% and 0.63%.
Volkswagen (DE:VOWG_p) added to losses, with shares down 1% after the carmaker’s chief executive Matthias Muller rejected compensation calls for European customers in the wake of the emissions scandal.
Meanwhile, Deutsche Boerse (DE:DB1Gn) inched up just 0.04% as the London Stock Exchange Group (LON:LSE) was set to hold a general meeting for shareholders on Monday to vote on the recommended all-share merger with the German company.
The merger was announced on March 16 and is set to be completed in the first quarter of 2017.
In London, commodity-heavy FTSE 100 eased up 0.09%, boosted by sharp gain the mining sector.
Shares in Antofagasta (LON:ANTO) and Anglo American (LON:AAL) rallied 2.77% and 3.36% respectively, while Randgold Resources (LON:RRS) jumped 3.82% and Fresnillo (LON:FRES) soared 7.04%.
Taylor Wimpey (LON:TW) was also on the upside, with shares rising 0.21%, after analysts at Deutsche Bank reaffirmed their ‘buy’ rating on the stock.
In the financial sector, stocks were broadly lower, as Lloyds Banking (LON:LLOY) inched down 0.08% and HSBC Holdings (LON:HSBA) dropped 0.61%, while Barclays (LON:BARC) and the Royal Bank of Scotland (LON:RBS) tumbled 1.23% and 1.47% respectively.
In the U.S., equity markets were to remain closed for the Independence Day holiday.