Investing.com - European markets opened lower on Wednesday, as declining oil prices weighed on energy stocks and as investors awaited a new string of corporate earnings reports.
The EURO STOXX 50 dropped 0.53%, France’s CAC 40 fell 0.26%, while Germany’s DAX 30 was down 0.74% by 03:35 a.m. ET (07:35 GMT).
Markets had already weakened on Tuesday, after strong economic growth data from the euro zone sent the single currency broadly higher.
Energy stocks followed oil prices sharply lower, as French oil and gas major Total SA (PA:TOTF) tumbled 0.91% and Italy's ENI (MI:ENI) retreated 0.99%, while Spanish rival Repsol (MC:REP) plummeted 1.84%.
Financial stocks were also on the downside, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.61% and 1.30%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) tumbled 1.55% and 1.44%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) retreated 0.79% and 1.20% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) lost 0.84% and 1.26%.
Elsewhere, Volkswagen (DE:VOWG_p) shares declined 0.71% after the German carmaker said that tax authorities and prosecutors raided the offices of its chief financial officer, head of human resources and chairman on Tuesday.
In London, commodity-heavy FTSE 100 slipped 0.26%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LON:RIO) and Anglo American (LON:AAL) lost 1.31%, while rival company Glencore (LON:GLEN) tumbled 1.72%.
On the other hand, precious metals miner Fresnillo (LON:FRES) was one of the best performers on the index, with shares up 3.35%, while gold miner Randgold Resources (LON:RRS) climbed 0.86.
In the financial sector, stocks were broadly lower. Barclays (LON:BARC) fell 0.33% and the Royal Bank of Scotland (LON:RBS) slid 0.36%, while Lloyds Banking (LON:LLOY) dropped 0.43% and HSBC Holdings (LON:HSBA) retreated 0.73%.
Barratt Developments (LON:BDEV) plc saw shares plummet 1.27% after analysts at Liberum Capital reaffirmed their “sell” rating on the stock.
On the earnings front, Talktalk reported operating losses of £42 million for the half-year to September, compared to a £44 million profit in the same period the previous year. The news sent the company's shares down 12.93% in European morning trade.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.38% loss, S&P 500 futures signaled a 0.41% decline, while the Nasdaq 100 futures indicated a 0.48% drop.