Investing.com - European stock markets were sharply lower on Wednesday, amid concerns over the ability of a new Italian government to shore up the economy after Italian Prime Minister Silvio Berlusconi offered to resign.
During European morning trade, the EURO STOXX 50 tumbled 1.72%, France’s CAC 40 dropped 1.65%, while Germany’s DAX 30 declined 1.03%.
Market sentiment found support earlier, after Berlusconi offered to step down as soon as parliament passes the budget for 2012 next week. The prime minister's decision followed a key vote on public finances on Tuesday, which resulted in his loss of the parliamentary majority.
Investors were also concerned as yields on Italian ten-year bonds hovered above 6.7%, while Greek officials were still struggling to form a new coalition government.
Energy stocks led losses as France's EDF tumbled 1.44% and Total declined 0.45%, while German companies RWE AG and BASF dropped 1.06% and 0.63% respectively.
The financial sector added to losses as German lenders Deutsche Bank and Commerzbank saw shares plunge 2.35% and 1.75%, while peripheral banks Unicredit in Italy and BBVA in Spain plummeted 2.23% and 1.97% respectively.
Meanwhile, France's second largest bank Societe Generale was up 0.91% after scrapping its 2011 dividend to help bolster capital and BNP Paribas declined 1.43%.
In London, FTSE 100 fell 0.99%, tracking heavy losses in financial stocks.
HSBC Holdings saw shares plunge 4.43% and Barclays plummeted 3.60%, while shares in the Royal Bank of Scotland and Lloyds Banking tumbled 1.61% and 0.66% respectively.
Elsewhere, energy stocks were mixed. Mining giants Rio Tinto and Bhp Billiton declined 0.09% and 1.08%, while British Petroleum saw shares advance 0.13% and International Power climbed 0.81%
Copper producers were also mixed, as shares in Xstrata jumped 1.41%, while Kazakhmys fell 0.89%.
Elsewhere, U.S. equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a drop of 1.18%, S&P 500 futures signaled a 1.51% fall, while the Nasdaq 100 futures indicated a 1.29% decline.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.
During European morning trade, the EURO STOXX 50 tumbled 1.72%, France’s CAC 40 dropped 1.65%, while Germany’s DAX 30 declined 1.03%.
Market sentiment found support earlier, after Berlusconi offered to step down as soon as parliament passes the budget for 2012 next week. The prime minister's decision followed a key vote on public finances on Tuesday, which resulted in his loss of the parliamentary majority.
Investors were also concerned as yields on Italian ten-year bonds hovered above 6.7%, while Greek officials were still struggling to form a new coalition government.
Energy stocks led losses as France's EDF tumbled 1.44% and Total declined 0.45%, while German companies RWE AG and BASF dropped 1.06% and 0.63% respectively.
The financial sector added to losses as German lenders Deutsche Bank and Commerzbank saw shares plunge 2.35% and 1.75%, while peripheral banks Unicredit in Italy and BBVA in Spain plummeted 2.23% and 1.97% respectively.
Meanwhile, France's second largest bank Societe Generale was up 0.91% after scrapping its 2011 dividend to help bolster capital and BNP Paribas declined 1.43%.
In London, FTSE 100 fell 0.99%, tracking heavy losses in financial stocks.
HSBC Holdings saw shares plunge 4.43% and Barclays plummeted 3.60%, while shares in the Royal Bank of Scotland and Lloyds Banking tumbled 1.61% and 0.66% respectively.
Elsewhere, energy stocks were mixed. Mining giants Rio Tinto and Bhp Billiton declined 0.09% and 1.08%, while British Petroleum saw shares advance 0.13% and International Power climbed 0.81%
Copper producers were also mixed, as shares in Xstrata jumped 1.41%, while Kazakhmys fell 0.89%.
Elsewhere, U.S. equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a drop of 1.18%, S&P 500 futures signaled a 1.51% fall, while the Nasdaq 100 futures indicated a 1.29% decline.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.