Investing.com - European markets opened sharply lower on Wednesday, amid ongoing concerns over Brexit negotiations and fresh political worries in the U.S.
The EURO STOXX 50 tumbled 1.05%, France’s CAC 40 lost 0.97%, while Germany’s DAX 30 was down 1.26% by 03:30 a.m. ET (07:30 GMT).
Markets were jittery following news the UK and the European Union failed to agree upon the terms for Brexit on Monday.
Investors also remained cautious du to fears of a U.S. government shutdown if lawmakers fail to reach a budget agreement this week. Government funding is set to expire Friday.
Sentiment was initially boosted after the U.S. Senate passed a tax overhaul package over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) lost 1.21% and 1.10%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) plummeted 1.98% and 1.25%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) declined 0.71% and 0.65% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) tumbled 0.97% and 0.94%.
Elsewhere, Thyssenkrupp (DE:TKAG) shares retreated 1.58% after the IG Metal union, Germany’s biggest union, gave the company until December 22 to guarantee jobs and investments before the labor group will approve a joint venture with Tata Steel Ltd.
Thyssenkrupp reached a tentative deal in September to merge its European steel businesses with Tata.
Deutsche Lufthansa AG (DE:LHAG) added to losses, with shares down 2% following reports easyJet (LON:EZJ) will start competing with the German airliner on routes from Berlin next month, following its planned takeover of parts of Air Berlin.
In London, FTSE 100 slid 0.31%, weighed by Hammerson PLC (LON:HMSO), whose shares plunged 4.12% after property developer said it agreed to buy Intu Properties PLC (LON:INTUP) for about £3.4 billion.
Intu Properties was the best performer in the index, with shares skyrocketing 17.79%.
Meanwhile, financial stocks were broadly lower. Shares in Barclays (LON:BARC) slipped 0.29% and the Royal Bank of Scotland (LON:RBS) dropped 0.33%, while HSBC Holdings (LON:HSBA) and Lloyds Banking (LON:LLOY) declined 0.59% and 0.64% respectively.
Mining stocks added to losses on the commodity-heavy index, as Glencore (LON:GLEN) and Anglo American (LON:AAL) retreated 0.74% and 0.78% respectively, while BHP Billiton (LON:BLT) lost 1.08% and Rio Tinto (LON:RIO) tumbled 1.37%.
Mulberry Group (LON:MUL) shares were flat after the retailer reported a 2% increase in retail sales in the first half of its fiscal year and flat total revenues.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.28% decline, S&P 500 futures signaled a 0.20% fall, while the Nasdaq 100 futures indicated a 0.53% drop.