Investing.com - European stocks remained broadly lower on Tuesday, as investors were cautious ahead of second-quarter earnings season, although upbeat German trade data lent some support.
During European afternoon trade, the DJ Euro Stoxx 50 slid 0.46%, France’s CAC 40 slumped 0.42%, while Germany’s DAX declined 0.43%.
Official data earlier showed that Germay's trade surplus widened to €18.8 billion in May, from €17.2 billion in April whose figure was revised down from a previously estimated €17.7 billion. Analysts had expected the trade surplus to narrow to €16.4 billion in May.
European equities found support on Monday after ECB Vice President Benoit Coeure said Sunday that rates will remain on hold for an extended period to ensure monetary stability in the euro zone.
The ECB left all rates on hold at its meeting last Thursday, after cutting rates to record lows in June in a bid to stave off the threat of persistently low inflation in the region.
Financial stocks remained broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) tumbled 1.44% and 1.39%, while Germany's Deutsche Bank (XETRA:DBKGn) plummeted 1.77%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) declined 1.72% and 1.75% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) dropped 0.57% and 0.94%.
Elsewhere, Air France-KLM (PARIS:AIRF) plunged 4.70% after the airline cut its full-year earnings forecast amid overcapacity on North American and Asian routes, poor demand for freight and the fallout from a dispute with Venezuela.
In London, FTSE 100 dropped 0.50%, still weighed by losses in the financial sector.
Shares in Barclays (LONDON:BARC) retreated 0.47% and HSBC Holdings (LONDON:HSBA) slumped 0.67%, while Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) lost 1.42% and 1.98%.
Marks & Spencer (LONDON:MKS) tumbled 1.25%, erasing earlier gains posted after the clothing retailer said quarterly revenue at its food unit climbed 1.7%. The company also reported a 12th straight quarterly drop in non-food sales.
Meanwhile, mining stocks remained mostly higher as Bhp Billiton (LONDON:BLT) added 0.13% and Fresnillo (LONDON:FRES) gained 0.62%, while Glencore Xstrata (LONDON:GLEN) and Rio Tinto (LONDON:RIO) climbed 0.79% and 0.85% respectively.
Also in the U.K., data showed that manufacturing production in the U.K. declined at the fastest rate in 16 months in May.
The Office for National Statistics said manufacturing production fell 1.3% in May, the largest decline since January 2013, confounding expectations for a gain of 0.4%.
In the U.S., equity markets pointed to a lower open. The Dow 30 futures pointed to a 0.14% loss, S&P 500 futures signaled a 0.15% fall, while the Nasdaq 100 futures indicated a 0.09% downtick.