Investing.com - European stocks opened sharply lower on Thursday, as renewed expectations for a June rate hike by the Federal Reserve weighed on global equity markets and as declining oil prices also affected the energy sector.
During European morning trade, the EURO STOXX 50 retreated 0.96%, France’s CAC 40 declined 0.83%, while Germany’s DAX 30 tumbled 1.19%.
Equity markets were hit after the minutes of the Fed’s April 26-27 meeting indicated that “most” of the central bank’s members are ready to raise interest rates as early as June.
Separately, oil prices fell sharply after data on Wednesday showed that U.S. stockpiles rose unexpectedly last week.
Energy-related stocks were broadly lower, as French oil and gas major Total SA (PA:TOTF) tumbled 1.49% and Italy’s ENI (MI:ENI) lost 1.76%, while Norwegian rival Statoil ASA (OL:STL) declined 1.45%.
Financial stocks were also lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) slid 0.21% and 0.49%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) fell 0.21% and 0.31%.
However, peripheral lenders were mostly on the upside. Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) rose 0.21% and 0.81% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) gained 0.63% and 0.70%.
Elsewhere, Henkel Ag A (OTC:HENOY) rallied 1.08% after the German group reiterated its 2016 guidance and reported a 6.2% increase in first quarter earnings.
Technip (PA:TECF) skyrocketed 13.44% after the French engineering company announced an all-stock merger with U.S. rival FMC Technologies (NYSE:FTI).
In London, commodity-heavy FTSE 100 lost 1.25%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LON:RIO) tumbled 3.96% and Glencore (LON:GLEN) plummeted 4.04%, while Anglo American (LON:AAL) and Fresnillo (LON:FRES) dove 4.55% and 5.59% respectively.
Thomas Cook Group Plc (LON:TCG) added to losses, with shares sinking 17.21% after saying that bookings for the summer dropped by 5%.
Royal Mail (LON:RMG) saw shares slide 2.64% after the postal service company reported a 1% increase in revenue for the 52 weeks ending 27 March 2016.
Meanwhile, financial stocks were mostly higher. Shares in Lloyds Banking (LON:LLOY) and the Royal Bank of Scotland (LON:RBS) gained 0.73% and 0.76% respectively, while Barclays (LON:BARC) rallied 1.41%. HSBC Holdings (LON:HSBA) underperformed, with shares declining 0.34%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.32% fall, S&P 500 futures a 0.31% slide, while the Nasdaq 100 futures indicated a 0.26% loss.