European stocks open lower, financials weigh; DAX down 0.39%

Investing.com - European stocks opened lower on Friday, weighed by losses in the financial sector and as investors became more cautious ahead of the Federal Reserve’s policy meeting next week.

During European morning trade, the EURO STOXX 50 dropped 0.51%, France’s CAC 40 fell 0.29%, while Germany’s DAX 30 slid 0.39%.

Expectations for an upcoming U.S. rate hike declined after the Commerce Department reported on Thursday that U.S. retail sales fell 0.3% in August, worse than expectations for a 0.1% decline. It was the first decline in five months.

In a separate report, the Department of Labor said initial jobless claims rose less than expected last week, pointing to further tightening in the labor market. But the Labor Department also reported that U.S. producer prices were flat in August.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) lost 0.88% and 1.02%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) plummeted 1.66% and 7.08%.

Deutsche Bank was hit after the U.S. Department of Justice asked the German lender to pay $14 billion to settle allegations of mis-selling mortgage securities.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) slid 0.38% and 0.67% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) dropped 0.62% and 0.83%.

Elsewhere, Lufthansa AG (DE:LHAG) tumbled 1.78% amid reports the German airline company could face more disruption to flights due to ongoing strikes.

In London, FTSE 100 fell 0.20%, as U.K. lenders tracked their European counterparts lower.

Shares in HSBC Holdings (LON:HSBA) slid 0.30% and Lloyds Banking (LON:LLOY) retreated 0.95%, whlie Barclays (LON:BARC) plummeted 2.01% and the Royal Bank of Scotland (LON:RBS) dove 3.89%.

Meanwhile, mining stocks were mixed on the commodity-heavy index. Glencore (LON:GLEN) gained 0.70% and Anglo American (LON:AAL) advanced 0.74%, while BHP Billiton (LON:BLT) slipped 0.20% and Rio Tinto (LON:RIO) declined 0.48%.

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BAE Systems (LON:BAES) was one of the worst performers on the index, with shares down 1.50% after the company said it was testing a new technology developed to transform ship maintenance for the UK Royal Navy and commercial organisations.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.18% fall, S&P 500 futures showed a 0.20% loss, while the Nasdaq 100 futures indicated a 0.17% slip.