Investing.com - European stocks opened lower in cautious trade on Wednesday, after China’s rating was downgraded by Moody’s and as markets were still recovering from the Manchester bombing.
During European morning trade, the EURO STOXX 50 fell 0.20%, France’s CAC 40 edged down 0.14%, while Germany’s DAX 30 slipped 0.25%.
Global equities weakened after Moody's downgraded its credit rating on China to "A1" from "Aa3", saying the country will "erode" its financial strength somewhat in the next few years.
Investors were also still digesting the Manchester terrorist attack that killed 22 people on Monday evening.
Financial stocks were mixed, as BNP Paribas (PA:BNPP) slid 0.30% and Societe Generale (PA:SOGN) added 0.10%, while Commerzbank (DE:CBKG) inched up 0.06% and Deutsche Bank (DE:DBKGn) retreated 0.41% in Germany.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) dropped 0.55% and 0.36% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) slipped 0.13% and 0.15%.
Elsewhere, Daimler AG NA O.N. (DE:DAIGn) saw shares decline 0.98% after German prosecutors said they will search 11 offices and sites of the company as part of an investigation into possible diesel emissions fraud.
On the upside, Nokia (HE:NOKIA) jumped 1.01% after it and Apple (NASDAQ:AAPL) came to an agreement in regards to a number of the Finnish company’s patents, with many pertaining to healthcare and fitness products.
In London, FTSE 100 dipped 0.05%, weighed by Kingfisher (LON:KGF), whose shares plunged 5.93% after the company reported a decline in first-quarter sales due to a slowdown in its French market.
Babcock International Group PLC (LON:BAB) added to losses, as shares dove 4.38%, even as the infrastructure company reported a 9.7% climb in pre-tax profit to £362.1 million for the financial year ended March 31.
Marks and Spencer Group PLC (LON:MKS) was also on the downside, with shares dropping 0.55% after the retailer announced a 64% decline in annual profit.
Mining stocks were mostly lower on the commodity-heavy index. Shares in Glencore (LON:GLEN) retreated 1.35% and Randgold (LON:RRS) ressources tumbled 1.75%, while Fresnillo (LON:FRES) and Rio Tinto (LON:RIO) plummeted 1.31% and 2.29% respectively.
Glencore made headlines after saying in a statement on Tuesday that it approached U.S. grain trader Bunge about a potential “consensual business combination.” However Bunge later said it isn’t engaged in “business combination discussions” with Glencore or the company’s agriculture unit.
In the financial sector, stocks were broadly higher as HSBC Holdings (LON:HSBA) edged up 0.10% and Lloyds Banking (LON:LLOY) rose 0.28%, while the Royal Bank of Scotland (LON:RBS) climbed 0.60%. Barclays (LON:BARC) underperformed however, with shares slipping 0.16%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.02% uptick, S&P 500 futures showed a 0.04% dip, while the Nasdaq 100 futures indicated a 0.01% gain.