Investing.com - European stocks opened sharply lower on Monday, tracking their Asian counterparts as concerns over Chinese growth and geopolitical tensions in the Middle East dampened market sentiment.
During European morning trade, the EURO STOXX 50 dove 3.34%, France’s CAC 40 lost 3.34%, while Germany’s DAX 30 plunged 3.61%.
Data earlier showed that China’s Caixin manufacturing purchasing managers' index fell to 48.2 this month from 48.6 in December, confounding expectations for a rise to 48.9.
The downbeat data added to concerns over slowdown in the world’s second biggest economy.
Markets were also jittery amid concerns over growing tensions in the Middle East after Saudi Arabia cut diplomatic ties with Iran over the weekend.
The move followed a weekend storming of the Saudi embassy in Tehran in response to the kingdom's execution of a prominent Shiite cleric.
Financial stocks were also broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) plummeted 2.64% and 2.90%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 3.20% and 3.83%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) plunged 2.27% and 2.53% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) tumbled 1.80% and 2.22%.
Daimler AG (DE:DAIGn) added to losses, with shares down 4.58% after the carmaker’s chief financial officer said it won’t spin off its commercial-vehicles unit.
Continental AG (DE:CONG) saw shares plummet 3.61% amid reports the tiremaker could lose sales because of the emissions scandal at its customer Volkswagen (DE:VOWG_p) AG last year.
In London, FTSE 100 lost 2.17%, as U.K. lenders tracked their European counterparts lower.
Shares in Lloyds Banking (L:LLOY) tumbled 1.71% and the Royal Bank of Scotland (L:RBS) declined 2.09%, while Barclays (L:BARC) retreated 2.18% and HSBC Holdings (L:HSBA) plunged 2.80%.
Mining stocks were also mostly lower on the commodity-heavy index. Bhp Billiton (L:BLT) and Rio Tinto (L:RIO) plummeted 3.22% and 3.41% respectively, while rival company Glencore (L:GLEN) dove 4.68%.
Meanwhile, Shire Plc (L:SHP) lost 3.32% amid reports the drugmaker is in advanced talks to acquire Baxalta Inc. for about $32 billion.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 1.71% drop, S&P 500 futures signaled a 1.60% loss, while the Nasdaq 100 futures indicated a 1.80% decline.