Investing.com - European stocks opened lower on Thursday, as markets were still digesting the Federal Reserve’ decision to raise interest rates and as investors were eyeing upcoming policy decisions by the Swiss National Bank and the bank of England later in the day.
During European morning trade, the EURO STOXX 50 declined 0.89%, France’s CAC 40 lost 0.83%, while Germany’s DAX 30 dropped 0.44%.
In a widely expected move, the Federal Reserve raised interest rates from 1.00% to 1.25%, in a widely expected move on Wednesday. However, disappointing U.S. inflation data released the same day raised questions about whether the central bank will be able to hike rates again later this year.
Meanwhile, markets were still jittery amid U.S. political turmoil after the Washington Post reported on Wednesday that U.S. President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice.
Later Thursday, the SNB and BoE were expected to leave their monetary policies unchanged but market participants will be looking for potential clues on future policy moves.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) tumbled 1.45% and 1.20%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) declined 0.59% and 0.75%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 0.85% and 1.45% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) advanced 0.64% and 0.77%.
Nokia Oyj (HE:NOKIA) added to losses, with shares down 0.70% even as the company launched the world's fastest network chips marking a breakthrough into the core router market.
Elsewhere, Volkswagen (DE:VOWG_p) saw shares drop 0.41% amid reports the automaker is set to offer an extra two-year guarantee to EU car owners but no money back in the fallout of the emissions scandal.
In London, commodity-heavy FTSE 100 declined 0.57%, weighed by losses in the mining sector.
Shares in Glencore (LON:GLEN) tumbled 1.27% and Randgold Resources (LON:RRS) lost 2.68%, while Fresnillo (LON:FRES) plummted 2.92%.
In the financial sector, stocks were also mostly lower. Lloyds Banking (LON:LLOY) fell 0.28% and the Royal Bank of Scotland (LON:RBS) slid 0.71%, while Barclays (LON:BARC) retreated 0.98%. HSBC Holdings (LON:HSBA) overperformed however, with shares climbing 0.43%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.31% fall, S&P 500 futures showed a 0.43% decline, while the Nasdaq 100 futures indicated a 0.97% drop.