European stocks open lower, markets digest ECB decision; DAX down 0.28%

Investing.com - European stocks opened lower on Friday, as markets digested the European Central Bank’s decision to leave its monetary policy unchanged and as investors eyed a string of manufacturing and service sector activity data from European countries.

During European morning trade, the EURO STOXX 50 slipped 0.27%, France’s CAC 40 edged down 0.12%, while Germany’s DAX 30 fell 0.28%.

Market sentiment improved briefly after ECB President Mario Draghi said on Thursday that European markets weathered the post-Brexit volatility with “encouraging resilience”, but reiterated that the central bank is ready to act by using all the instruments available under its mandate if necessary.

Draghi also said the euro zone recovery faces several headwinds, and the risks remain tilted to the downside, citing the UK referendum, slowing emerging markets and the slow pace of structural reforms as key threats.

The comments came after the central bank left its benchmark interest rate unchanged at a record-low 0.0% in a widely expected move.

Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) retreated 0.77% and 0.97%, while Commerzbank (DE:CBKG) declined 0.67% and Deutsche Bank (DE:DBKGn) climbed 0.50% in Germany.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) lost 0.43% and 0.97% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) rose 0.10% and 0.36%.

Elsewhere, Syngenta AG (SIX:SYNN) dropped 0.46% said talks with regulatory authorities to win approval for a takeover deal by China National Chemical Corp. for $43 billion have been constructive.

On the upside, Philips Lighting BV (AS:LIGHT) surged 3.97% after the Dutch company said second-quarter profit increased by 16%, thanks to a rise in sales of products based on more energy-efficient light emitting diodes.

In London, commodity-heavy FTSE 100 slipped 0.22%, weighed by losses in the mining sector.

Shares in Glencore (LON:GLEN) dropped 0.57% and BHP Billiton (LON:BLT) lost 1.52%, while rival company Anglo American (LON:AAL) plummeted 2.15%.

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Financial stocks were also on the downside, as Barclays (LON:BARC) dipped 0.05% and HSBC Holdings (LON:HSBA) slid 0.57%, while the Royal Bank of Scotland (LON:RBS) and Lloyds Banking (LON:LLOY) tumbled 1.07% and 1.29% respectively.

Meanhile, Vodafone (LON:VOD) was one of the top performers on the index, with shares rallying 2.52% after the company said first-quarter service revenue exceeded analysts’ estimates, helped by improvements in its European mobile-phone businesses.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.10% gain, S&P 500 futures a 0.08% rise, while the Nasdaq 100 futures indicated a 0.07% uptick.