European stocks lower amid E.Z., U.S. concerns; Dax down 0.74%

Investing.com - European stocks opened lower on Monday, as market sentiment was hit by renewed concerns over the situation in the euro zone and after U.S. lawmakers failed on Friday to avert a first series of automatic spending cuts.

During European morning trade, the EURO STOXX 50 dropped 0.75%, France’s CAC 40 slid 0.67%, while Germany’s DAX 30 retreated 0.74%.

Fresh euro zone concerns emerged after preliminary data on Friday showed that consumer price inflation in the bloc ticked down to a annualized rate of 1.8% in February, while a separate report showed that the unemployment rate in the region rose to a new record high of 11.9% in January.

Investor confidence also weakened after USD85 billion of automatic spending cuts, known as the "sequestration", began on Friday as lawmakers could not agree on spending cuts and tax reform to tackle the country's budget deficit.

U.S President Barack Obama said on Sunday he could compromise with Republican lawmakers by cutting welfare entitlements such as Medicare.

Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale dropped 0.78% and 1.29%, while Germany's Deutsche Bank and Commerzbank retreated 0.69% and 1.35% respectively.

Peripheral lenders added to losses, with Spanish banks Banco Santander and BBVA tumbling 0.70% and 1.09%, while Italy's Unicredit and Intesa Sanpaolo plunged 2.30% and 3.30%.

On the upside, Spanish oil and gas firm Repsol jumped 1.39% after selling its treasury shares, totaling 5% of the company's stock, to Singapore's Temasek for EUR1.04 billion.

In London, commodity-heavy FTSE 100 declined 0.56%, weighed by sharp losses in oil and mining stocks.

Oil and gas major Anglo American saw shares plummet 3.91%, while rival BP dropped 0.57%.

In addition, mining giants BHP Billiton and Rio Tinto dove 2.03% and 2.80% respectively, while Eurasian Natural Resources plunged 2.96%.

Copper producers Xstrata and Kazakhmys were also on the downside, with shares retreating 1.69% and 3.22%.

Elsewhere, U.K. lenders tracked their European counterparts lower. Shares in HSBC Holdings tumbled 1.21% and Barclays declined 1.36%, while the Royal Bank of Scotland plunged 1.74% and Lloyds Banking sank 2.52%.

Department store Debenhams also trended lower, diving 9.99%, after saying that profit will drop in the first half of the year.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.39% drop, S&P 500 futures signaled a 0.48% decline, while the Nasdaq 100 futures indicated a 0.48% loss.

Market sentiment also weakened after China announced more property market tightening measures on Friday, in a bid to contain housing costs.

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