European stocks tumble on Draghi comments, oil drop; Dax down 1.27%

© Reuters. European stocks move sharply lower on E.Z. growth concerns

Investing.com - European stocks were sharply lower on Friday, as declining oil prices and comments by European Central Bank President Mario Draghi weighed.

During European morning trade, the EURO STOXX 50 lost 1.08%, France’s CAC 40 retreated 0.89%, while Germany’s DAX 30 tumbled 1.27%.

European equities were hit after ECB President Draghi warned on Thursday that weak growth in the euro zone could cause “lasting dammage” in the region.

Meanwhile, oil prices moved lower for a second consecutive session amid profit-taking.

Energy-related stocks were broadly lower, as French oil and gas major Total SA (PA:TOTF) declined 0.95% and Italy’s ENI (MI:ENI) dropped 0.57%, while Russian rival Gazprom (MCX:GAZP) lost 0.82%.

Financial stocks added to losses, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) tumbled 1.36% and 1.40%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) plummeted 2.47% and 2.86%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 1.16% and 1.18% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) plunged 1.47% and 2.48%.

Elsewhere, shares in Lufthansa AG (DE:LHAG) dove 4.46% after the German airline company announced the surprise departure of Chief Financial Officer Simone Menne.

A member of the company’s board since 2012, Menne’s resignation will be effective on August 31 to “pursue individual career options,” the company said in a statement.

On the upside, ArcelorMittal SA (AS:ISPA) rallied 1.30% following news the EU could extend its anti-dumping investigation to include more countries.

Close to half of the company’s revenue comes from the EU, so this measure could help the steel manufacturer increase sales by competing more effectively on pricing.

In London, FTSE 100 declined 0.69%, as U.K. lenders tracked their European counterparts lower.

Shares in HSBC Holdings (LON:HSBA) slid 0.69% and Lloyds Banking (LON:LLOY) lost 1.15%, while Barclays (LON:BARC) and the Royal Bank of Scotland (LON:RBS) tumbled 1.52% and 1.87% respectively.

Sports Direct (LON:SPD) was one of the worst performers on the index, with shares down 2.53%, after Britsh members of Parliament on Thursday invited the company’s founder Mike Ashley to give evidence on the collapse of the BHS department store chain.

BHS went into administration in April after the company ran out of money and could not pay suppliers.

Meanwhile, mining stocks were mostly higher on the commodity-heavy index. Randgold Resources (LON:RRS) and Rio Tinto (LON:RIO) edged up 0.07% and 0.08%, while Fresnillo (LON:FRES) rose 0.25%. Glencore (LON:GLEN) underperformed however, with shares declining 0.96%.

Sky Plc (LON:SKYB) added to gains, with shares up 0.21% after analysts at Deutsche Bank reaffirmed their buy rating on the stock.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.29% fall, S&P 500 futures a 0.35% loss, while the Nasdaq 100 futures indicated a 0.47% drop.