European stocks down ahead of Slovak vote; DAX slides 0.88%

Investing.com - European stock markets were sharply lower on Tuesday, ending a four-day rally as investors eyed Slovakia's parliamentary vote to ratify an expansion of the euro zone's rescue fund.

During European morning trade, the EURO STOXX 50 fell 0.87%, France’s CAC 40 dropped 0.88%, while Germany’s DAX 30 slid 0.88%.

Slovakia is the last of the euro zone's 17 members to vote on a deal to enhance the size and powers of the European Financial Stability Fund.

All of the euro zone states must ratify the EFSF expansion for it to become effective.
Also Tuesday, outgoing European Central Bank President Jean-Claude Trichet said that the euro zone debt crisis had become systemic and that risks to the economy were increasing rapidly.

The energy sector led losses, tracking the downward trend in commodity prices. France's Total saw shares drop 1.09% and EDF shedding 0.26%, while shares in Germany's E.ON AG fell 0.75%.

Shares in the telecom sector were also on the downside, with Spanish group Telefonica tumbling 1.22% and Germany's Deutsche Telecom sliding 0.60%, while French companies Alcatel-Lutent and France Telecom saw shares fall 1.46% and 0.92% respectively.

Meanwhile, European lenders were mixed. Germany's Deutsche Bank and Commerzbank saw shares fall 0.38% and 1.30% respectively, French lenders were up, with shares in BNP Paribas gaining 1.60% and Societe Generale rising 1.45%.

In London, the commodity-heavy FTSE 100 dropped 0.95%, tracking losses in commodity prices.

Mining giants BHP Billiton and Rio Tinto saw shares plummet 2.56% and 2.20% respectively, while British Petroleum fell 0.75%.

Copper producers also largely contributed to losses, with Kazakhmys and Xstrata plunging 3.94% and 2.90%.

Shares in the financial sector were mixed, as Lloyds Banking fell 0.36% and HSBC Holdings tumbled 1.42%, while Barclays rose 0.44% and the Royal Bank of Scotland advanced 0.12%.

Elsewhere, U.S. equity markets pointed to a broadly lower open. The Dow Jones Industrial Average futures pointed to a drop of 0.54%, S&P 500 futures signaled a 0.70% fall, while the Nasdaq 100 futures indicated a 0.44% decline.

Also Tuesday, officials from the European Union, the International Monetary Fund and the European Central Bank were due to announce a decision on Greece's next tranche of financial aid.