Investing.com - European stocks opened lower on Tuesday, as oil prices resumed their downward trend and as concerns over global economic growth persisted.
During European morning trade, the EURO STOXX 50 retreated 0.96%, France’s CAC 40 lost 1.28%, while Germany’s DAX 30 tumbled 0.92%.
Oil prices moved back toward $31 a barrel after hovering above $34 a barrel for the past three sesssions as concerns over the global supply glut resumed.
Meanwhile, investors remained cautious amid ongoing concerns over global economic growth after data on Monday showed that manufacturing activity in China contracted for a sixth straight month in January.
In addition, data on Monday showing that growth in the euro zone manufacturing sector slowed last month added to fears over the risk of deflation in the region.
Financial stocks were broadly lower, with French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) tumbled 1.61% and 1.43%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 1.46% and 1.95%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) retreated 0.94% and 0.63% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) declined 0.69% and 0.63%.
Swiss bank UBS Group AG (VX:UBSG) plummeted 4.80% after reporting 2015 an increase of 79% in net profit, exceeding analyst forecasts. However, the bank warned that volatile markets, low interest rates and a strong Swiss franc would continue to present headwinds.
In earnings news, Infineon Technologies AG (DE:IFXNe) saw shares plunge 5.05% even after reporting a 12% year-on-year climb in third-quarter net income.
In London, commodity-heavy FTSE 100 dropped 0.94%, weighed by sharp losses in the energy and mining sectors.
Oil and gas major BP (L:BP) led losses on the index, with shares diving 5.74%, while rival company Royal Dutch Shell (L:RDSa) tumbled 1.74%.
Mining giants Anglo American (L:AAL) and Rio Tinto (L:RIO) lost 1.88% and 1.95% respectively, while Bhp Billiton (L:BLT) plunged 3.05%.
Financial stocks were also broadly lower, as HSBC Holdings (L:HSBA) dropped 0.99% and the Royal Bank of Scotland (L:RBS) retreated 1.45%, while Lloyds Banking (L:LLOY) and Barclays (L:BARC) plummeted 1.43% and 1.70% respectively.
On the upside, supermarket chain J Sainsbury PLC (L:SBRY) rallied 1.41% after saying it agreed to buy Home Retail in a £1.3 billion deal.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.62% drop, S&P 500 futures a 0.66% slide, while the Nasdaq 100 futures indicated a 0.74% loss.