European stocks sharply lower, led by energy stocks; Dax down 0.93%

Investing.com - European stocks were sharply lower on Friday, ahead of euro zone economic reports as fears over a potential military intervention in Syria by the U.S. and its allies weighed, sparking losses in commodity-linked stocks.

During European morning trade, the EURO STOXX 50 retreated 0.93%, France’s CAC 40 declined 0.84%, while Germany’s DAX 30 dropped 0.93%.

Investors remained cautious amid concerns over an impending U.S.-led military strike against Syria, following the alleged use of chemical weapons.

The White House said on Thursday that President Barack Obama will decide on a response to Syria based on U.S. interests, but will continue to consult with Britain despite the British Parliament's "no" vote to a military intervention.

Energy stocks were broadly lower, as they tracked the downtrend in oil prices. Shares in Repsol and Iberdrola tumbled 1.62% and 1.91% respectively, while French oil and gas company Total lost 1.02%.

Financial stocks added to losses, as French lenders BNP Paribas and Societe Generale retreated 1.01% and 0.45%, although Germany's Deutsche Bank rallied 1.56%.

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.84% and 1.10% respectively, while Italy's Intesa Sanpaolo and Unicredit slid 0.53% and 1.38%.

Elsewhere, Danone plummeted 1.22% after saying baby-nutrition sales will fall in Asia in the third quarter.

On the upside, luxury retailer Hermes International surged 2.80% after the French company reported a 14% rise in first-half operating profit, blowing past market expectations.

In London, commodity-heavy FTSE 100 retreated 0.62%, weighed by losses in the energy sector.

BP saw shares tumble 1.09% and Petrofac plunged 2.74%, while Anglo American slid 0.33%.

Meanwhile, mining stocks were mixed, with Vedanta Resources and Evraz plummeting 1.83% and 2.61% respectively, while Randgold Resources and Polymetal shares rallied 1.48% and 2.58%.

In the financial sector, stocks were broadly lower as Lloyds Banking slumped 0.70% and Barclays retreated 0.88%, while HSBC Holdings and the Royal Bank of Scotland lost 1.05% and 1.14%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.02% dip, S&P 500 futures signaled a 0.02% gain, while the Nasdaq 100 futures indicated a 0.03% rise.

Later in the day, the euro zone was to publish preliminary data on consumer price inflation, in addition to data on the unemployment rate.

The U.S. was to release a report on manufacturing activity in Chicago and revised data from the University of Michigan on consumer sentiment, as well as data on personal income and personal spending.