Investing.com - European stocks sharply lower on Thursday, after the two previous sessions’ sharp gains, as markets began to stabilize although more global effects of Britain’s decision to leave the European Union were expected to come.
During European morning trade, the EURO STOXX 50 declined 0.75%, France’s CAC 40 slid 0.73%, while Germany’s DAX 30 dropped 0.61%.
Markets recovered on Tuesday and Wednesday from fears that a Brexit could hit investment in the U.K. economy, threaten London's role as a global financial capital and usher in a period of slower global economic growth.
The President of the European Council Donald Tusk said on Wednesday that there was a "calm and serious discussion" about the consequences of the vote and reiterated that there would be no negotiations with the U.K on any future relationship until the country formally notified the EU of its intention to withdraw.
Oil prices moved lower on Thursday after climbing back above the $50 a barrel threashold on Wednesday.
Energy stocks were mixed, as French oil and gas major Total SA (PA:TOTF) fell 0.29% and Italy’s ENI (MI:ENI) slid 0.42%, while Norwegian rival Statoil (OL:STL) jumped 1.20% and Russia’s Gazprom (MCX:GAZP) gained 0.27%.
Financial stocks were broadly lower after two days of sharp gains. French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) plummeted 2.02% and 1.71%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) dove 4.10% and 4.49%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 4.98% and 4.83% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) tumbled 2.33% and 0.96%.
Elsewhere, Bayer (DE:BAYGN) shares declined 1.56% after Monsanto (NYSE:MON) has asked the German company to increase its takeover offer, reportedly demanding an extra $10 to $15 a share.
In London, FTSE 100 dropped 0.52%, as U.K. lenders tracked their European counterparts lower and as investors eyed the release of first-quarter U.K. economic growth data due later in the day.
HSBC Holdings (LON:HSBA) slid 0.50% and the Royal Bank of Scotland (LON:RBS) retreated 0.83%, while Lloyds Banking (LON:LLOY) lost 1.76%. Barclays (LON:BARC) overperformed however, with shares surging 3.12%.
Mining stocks were also mostly lower on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) declined 1.35% and BHP Billiton (LON:BLT) tumbled 1.69%, while Anglo American (LON:AAL) plummeted 1.95%.
Meanwhile, 3I Group (LON:III) was one of the top performers on the index, with shares soaring 5.75% after the private equity and venture capital company said that Action, the group's largest portfolio investment, continues to grow strongly.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures a 0.39% drop, while the Nasdaq 100 futures indicated a 0.40% loss.