Investing.com - European stocks were sharply lower on Tuesday, as investors remained cautious after Monday's disappointing German data and as last week's comments by European Central Bank President Mario Draghi continued to weigh.
During European morning trade, the EURO STOXX 50 plummeted 1.37%, France’s CAC 40 lost 1.36%, while Germany’s DAX 30 tumbled 1.07%.
Data showed on Monday that German industrial production rose just 0.2% in October, while September’s figure was revised down to 1.1% from 1.4% previously. The data fuelled concerns over the outlook for fourth quarter growth.
Meanwhile, European equities remained under pressure after ECB President Mario Draghi indicated last week that the bank would not embark on quantitative easing for now, saying the bank would reassess its stimulus program in the first quarter of 2015.
Financial stocks were broadly lower as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) lost 1.02% and 1.64%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) and retreated 0.46% and 0.74%.
Deutsche Bank remained in the spotlight amid reports it has been accused of using underfunded shell companies to evade U.S. taxes in a government lawsuit seeking $190 million in taxes, penalties and interest.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo tumbled 1.15% and 1.33% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA dropped 0.90% and 1.29%.
Elsewhere, Altice (AMS:ATCE) shares were down 0.60% after the cabe company agreed to buy Oi SA (SA:OIBR3)'s Portuguese phone assets for €7.4 billion.
In London, FTSE 100 declined 1.30%, led by Tesco, down 13.75% after saying its full-year trading profit won't exceed £1.4 billion.
Financial stocks added to losses, as Lloyds Banking (LONDON:LLOY) dropped 0.93% and HSBC Holdings (LONDON:HSBA) tumbled 1.19%, while the Royal Bank of Scotland (LONDON:RBS) lost 1.28% and Barclays plummeted 1.80%.
The Royal Bank of Scotland was said to be seeking offers for its international private bank as soon as this week.
In the mining sector, stocks were also broadly lower. Shares in Glencore Xstrata (LONDON:GLEN) retreated 1.70% and Rio Tinto plummeted 2.32%, while Bhp Billiton plunged 2.58%. Randgold Resources overperformed however with shares rallying 1.66%, leading gains on the index.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.35% fall, S&P 500 futures signaled a 0.37% decline, while the Nasdaq 100 futures indicated a 0.35% loss.