Investing.com - European markets opened lower on Monday, as German political turmoil dampened market sentiment and as investors eyed an upcoming speech by European Central Bank President Mario Draghi.
The EURO STOXX 50 fell 0.18%, France’s CAC 40 slipped 0.15%, while Germany’s DAX 30 was down 0.30% by 03:35 a.m. ET (07:35 GMT).
Investors remained cautious after German Chancellor Angela Merkel said she failed to form a government coalition, sparking concerns that a new election may be in order.
The Free Democrats Party (FDP) unexpectedly left the negociation table Sunday, leaving Merkel's conservative camp and the Green party with no coalition agreement. If no government is formed, German President Frank-Walter Steinmeier can call a new election.
Financial stocks were mostly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) eased 0.08% and 0.23%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 0.16% and 0.95%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) dipped 0.08%, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) slipped 0.02% and 0.21% respectively.
Elsewhere, RWE AG (DE:RWEG) surged 3.57% amid reports the German utility is planning to cut its €16.8-billion stake in retail business Innogy, which could potentially involve a deal with Italy’s Enel (MI:ENEI).
Last week, the company said there was no need to sell the 76.8% stake.
Prosiebensat 1 Media AG (DE:PSMGn) added to gains, with shares up 1.32% after Chief Executive Thomas Ebeling said he will be leaving the German broadcaster in February 2018.
In London, FTSE 100 slid 0.35%, weighed by J Sainsbury PLC (LON:SBRY), whose shares were down 1.89%. The stock was closely followed by 3I Group (LON:III), down 1.73%.
Mining stocks added to losses on the commodity-heavy index, as Rio Tinto (LON:RIO) dropped 0.77% and BHP Billiton (LON:BLT) lost 0.99%, while rival company Glencore (LON:GLEN) retreated 0.89%.
Financial stocks were also mostly lower, as Lloyds Banking (LON:LLOY) fell 0.20% and HSBC Holdings (LON:HSBA) declined 0.63%, while the Royal Bank of Scotland (LON:RBS) dropped 0.77%. Barclays (LON:BARC) overperformed, with shares up 0.32%.
EasyJet PLC (LON:EZJ) was ome of the top performers on the index, with shares up 1.09%. The airliner made headlines last week when it posted another decline in profits and announced a £5 million pay-off for departing Chief Executive Carolyn McCall.
Sky Plc (LON:SKYB) continued to climb for a second consecutive session, following reports late last week that Comcast (NASDAQ:CMCSA) and Verizon have joined the pursuit for 21st Century Fox, which owns a 39% stake in the British company.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.17% loss, S&P 500 futures signaled a 0.18% fall, while the Nasdaq 100 futures indicated a 0.19% slide.