European stocks edge lower, eyes on EU talks; DAX down 0.49%

Investing.com - European stocks were lower on Tuesday, as global growth concerns weighed on market sentiment, while investors awaited the outcome of a key meeting of European Union finance ministers.

During European morning trade, the EURO STOXX 50 fell 0.30%, France’s CAC 40 edged down 0.07%, while Germany’s DAX 30 dropped 0.49%.

Sentiment weakened after the International Monetary Fund cut its global growth forecasts and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.

The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.

Investors also remained cautious amid uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.

Financial stocks were broadly lower, as shares in French lenders Societe Generale and BNP Paribas fell 0.13% and 0.31%, while Germany's Deutsche Bank and Commerzbank declined 0.87% and 0.14% respectively.

Peripheral lenders added to losses, as Italian banks Unicredit and Intesa Sanpaolo dropped 0.53% and 0.48%, while Spain's BBVA and Banco Santander retreated 0.89% and 0.92%.

The telecom sector was also on the downside, as shares in Telefonica tumbled 1.14% and Telecom Italia plunged 2.28%, while France Telecom dropped 0.64%.

In London, FTSE 100 fell 0.23%, after data showed that U.K. manufacturing production dropped more-than-expected in August, while the country's trade deficit widened more-than-anticipated.

U.K. lenders were mostly lower, led by the Royal Bank of Scotland slid 0.62%, while Lloyds Banking shed 0.35% and Barclays lost 0.34%. HSBC Holdings outperformed its counterparts on the other hand, with shares inching up 0.05%.

Mining stocks were mixed, as Rio Tinto saw shares jump 1.69% and BHP Billiton fell 0.12%. Meanwhile, copper producers Xstrata and Kazakhmys posted sharp gains, with shares climbing 0.91% and 1.10%.

Oil and gas giant Anglo American added to gains, with shares rallying 1.04%, while rival BP added 0.59%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.10% fall, while the Nasdaq 100 futures indicated a 0.24% decline.

Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to hold a day of talks in Brussels.