European stocks fall in choppy trade, eyes on E.Z. talks; DAX down 0.27%

Investing.com - European stocks declined in choppy trade on Monday, as soaring Spanish borrowing costs sparked fresh concerns over the worsening of the debt crisis in the euro zone, while worries over the outlook for global economic growth persisted.

During European morning trade, the EURO STOXX 50 dropped 0.50%, France’s CAC 40 declined 0.44%, while Germany’s DAX 30 retreated 0.27%.

Market sentiment remained fragile after official data on Friday showed that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.

In addition, Chinese government data released earlier showed that consumer price inflation accelerated at the slowest rate since January 2010 in June, potentially giving Beijing room to further ease monetary policy.

Meanwhile, the yield on Spain’s 10-year government bonds climbed to 7.4% earlier, above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later in the day.

Euro zone officials were expected to discuss a plan announced last month and designed to help the region’s indebted countries and their struggling banking systems.

Spanish lenders led losses, as shares in Banco Santander tumbled 1.54% and BBVA dropped 1.08%. Germany’s Deutsche Bank also dropped 0.51%.

France’s BNP Paribas and Societe Generale and BNP Paribas were on the upside however, with shares rising 0.48% and 0.11%.

Elsewhere, French chemicals manufacturer Arkema jumped 1.13% after CEO Thierry Le Henaff said that the company will seek to stay independent and focus on its own growth strategy.

The stock had surged 15% last week after the Financial Times reported that the company received takeover approaches valuing it at EUR5.5 billion euros or more.

In London, commodity-heavy FTSE 100 dropped 0.43%, led by losses in mining stocks.

Shares in copper producer Xstrata plunged 1.83% and Kazakhmys tumbled 1.45%, while mining giants Rio Tinto and BHP Billiton declined 1.16% and 1.11% respectively.

Energy stocks also contributed to losses as shares in oil and gas major Anglo American plummeted 1.65% and BP saw shares retreat 1.25%.

Meanwhile, financial stocks were mixed. Shares in the Royal Bank of Scotland rose 0.22% and HSBC Holdings edged up 0.09%, while Barclays and Lloyds banking declined 0.10% and 1.06%.

Also on the downside, Michael Page International dove 4.39% after the recruitment company said gross profit declined 6.6% in the second quarter from the same period a year earlier and forecast the third quarter will be “challenging.”

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.51% drop, S&P 500 futures signaled a 0.49% decline, while the Nasdaq 100 futures indicated a 0.35% loss.

Later in the day, a report was to be produced on investor confidence in the euro zone, while European Central Bank President Mario Draghi was to testify before the European Parliament.