Investing.com – European stocks traded lower on Tuesday as investors opted for a risk-off stance in an environment of global uncertainty.
Nearing midday trade in Europe, the benchmark Euro Stoxx 50 lost 0.56%, France’s CAC 40 fell 0.33% while Germany’s DAX 30 traded down 0.44%.
In Europe, market players were cautious ahead of British elections and the monetary policy decision by the European Central Bank (ECB) both on Thursday.
In the U.K., polls widely expect the Conservative Party to win a victory over Labour, although some outlier surveys suggest the lead has been narrowing.
The ECB, for its part, is forecast to leave policy unchanged, although the focus is on whether its president Mario Draghi might make a small shift to becoming slightly less dovish.
Stateside, market players were cautious while waiting for former FBI director James Comey's testimony before the Senate Intelligence Committee also on Thursday, in a hearing that could add to difficulties facing U.S. President Donald Trump.
It has been reported that Comey plans to testify to conversations in which Trump pressured him to drop his investigation into former National Security Advisor Mike Flynn, who was fired for failing to disclose conversations with Russian officials.
Additionally, oil prices continued to move lower on concerns that a diplomatic rift between Qatar and several Arab states including Saudi Arabia could undermine efforts by OPEC to tighten the market.
In the latest developments, Qatar's foreign minister said Tuesday that Doha was ready for mediation efforts after the Arab world's biggest powers severed ties with it, adding that Qatar's ruler had delayed a speech in order to give Kuwait a chance to ease regional tensions.
While caution reigned in equity markets, investor sentiment remained skewed toward safe-haven assets with gold futures hitting their highest level in more than six weeks.
On the economic front, there were mixed readings as the U.K. saw retail sales fall just 0.4% in May, slightly less than expected.
The month-on-month reading for April retail sales in the euro zone inched up a slightly less-than-expected 0.1%, but the annualized reading clocked a better-than-forecast 2.5%.
In another positive surprise for the euro area, investor sentiment hit its highest level since July 2007.
In Europe, energy stocks traded mixed, as French oil and gas major Total SA (PA:TOTF) lost 0.11%, Italy’s ENI (MI:ENI) jumped 1.36%, while Norwegian rival Statoil (OL:STL) gained 0.34%.
Financial stocks registered were mostly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) fell 0.82% and 1.14%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) traded down 1.28%, but rival Commerzbank (DE:CBKG) gained 0.92%
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) fell 0.86% but Unicredit (MI:CRDI) advanced 0.13%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) lost 0.66% and 0.50%, respectively.
In London, FTSE 100 lost 0.29% as mining stocks put downward pressure on the commodity-heavy index.
Shares in Glencore (LON:GLEN) slumped 2.26%, Anglo American (LON:AAL) lost 1.12%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) traded down 0.73% and 0.76%, respectively.
Energy stocks moved lower, as BP (LON:BP) fell 0.30% and rival Royal Dutch Shell (LON:RDSa) gave up 0.13%.
Financial stocks were mixed, with shares in HSBC Holdings (LON:HSBA) up 0.51%, but Royal Bank of Scotland (LON:RBS) sank 1.58%, while Lloyds Banking (LON:LLOY) and Barclays (LON:BARC) lost 0.57% and 0.32%, respectively.
In the U.S., stock futures pointed to a slightly lower open. The Dow Jones Industrial Average futures slipped 0.09%, S&P 500 futures edged down 0.11%, while the Nasdaq 100 futures dropped 0.04%.