Investing.com - European stock markets were mildly lower after the open on Wednesday, as risk appetite remained subdued amid uncertainty over the U.S. fiscal cliff, while doubts over the Greek debt deal also weighed.
During European morning trade, the EURO STOXX 50 shed 0.4%, France’s CAC 40 dipped 0.3%, while Germany’s DAX 30 eased down 0.2%.
Markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Senate Majority Leader Harry Reid spooked investors Tuesday after saying that there had been “little progress” made toward reaching a deal by the end of the year.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Doubts over the Greek debt deal also weighed on sentiment. Greece’s constitutional lenders reached an agreement Tuesday to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
But the lack of detail on how Greece will implement reforms needed to meet its new debt targets dented investor confidence.
Shares in the financial sector were broadly lower, with Germany’s Deutsche Bank and Commerzbank down 2% and 1.8% respectively, while France’s BNP Paribas fell 0.9% and Italy’s Unicredit lost 0.85%.
Elsewhere, in London, the FTSE 100 declined 0.3%, pulled down by losses in lenders and miners.
Lloyds Banking Group slumped 1.1%, Royal Bank of Scotland shed 1%, while Barclays edged 0.5% lower.
Miners also contributed to losses, with BHP Billiton and Rio Tinto dropping 0.85% and 0.75% respectively, while copper miner Xstrata fell 0.9%.
On the upside, United Utilities saw shares climb 1.6% after the firm reported a rise in six-month profit and said it’s on track to meet its regulatory targets.
Meanwhile, in the U.S., equity markets pointed to a modestly lower open, as a lack of progress in negotiations for a deal to avoid a U.S. budget crisis before a January deadline weighed on appetite for riskier assets.
The Dow Jones Industrial Average futures pointed to a loss of 0.1% at the open, S&P 500 futures signaled a 0.15% decline, while the Nasdaq 100 futures indicated a 0.1% loss.
Later in the day, the U.S. was to release official data on new home sales, as well as government data on crude oil inventories.
During European morning trade, the EURO STOXX 50 shed 0.4%, France’s CAC 40 dipped 0.3%, while Germany’s DAX 30 eased down 0.2%.
Markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Senate Majority Leader Harry Reid spooked investors Tuesday after saying that there had been “little progress” made toward reaching a deal by the end of the year.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Doubts over the Greek debt deal also weighed on sentiment. Greece’s constitutional lenders reached an agreement Tuesday to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
But the lack of detail on how Greece will implement reforms needed to meet its new debt targets dented investor confidence.
Shares in the financial sector were broadly lower, with Germany’s Deutsche Bank and Commerzbank down 2% and 1.8% respectively, while France’s BNP Paribas fell 0.9% and Italy’s Unicredit lost 0.85%.
Elsewhere, in London, the FTSE 100 declined 0.3%, pulled down by losses in lenders and miners.
Lloyds Banking Group slumped 1.1%, Royal Bank of Scotland shed 1%, while Barclays edged 0.5% lower.
Miners also contributed to losses, with BHP Billiton and Rio Tinto dropping 0.85% and 0.75% respectively, while copper miner Xstrata fell 0.9%.
On the upside, United Utilities saw shares climb 1.6% after the firm reported a rise in six-month profit and said it’s on track to meet its regulatory targets.
Meanwhile, in the U.S., equity markets pointed to a modestly lower open, as a lack of progress in negotiations for a deal to avoid a U.S. budget crisis before a January deadline weighed on appetite for riskier assets.
The Dow Jones Industrial Average futures pointed to a loss of 0.1% at the open, S&P 500 futures signaled a 0.15% decline, while the Nasdaq 100 futures indicated a 0.1% loss.
Later in the day, the U.S. was to release official data on new home sales, as well as government data on crude oil inventories.