European stocks tumble on Greek rescue delay; DAX drops 1.2%

Investing.com – European stock markets were sharply lower on Monday, after euro zone finance ministers deferred a decision on a new Greek bailout package, while U.S. futures indices pointed to a lower open on Wall Street. 

During European morning trade, the EURO STOXX 50 tumbled 1.5%, France’s CAC 40 slumped 1.3%, while Germany's DAX 30 sank 1.2%.

On Sunday, Euro Group finance ministers said that a new bailout package for Greece would be decided upon by early July and would be dependent on the Greek parliament passing a controversial austerity package.

Greek lawmakers were expected to vote on harsh new economic reforms and spending cuts on Tuesday.

Shares in lenders, many of which have exposure to Greek debt, were broadly lower. France’s biggest retail bank, BNP Paribas saw shares drop 2.6%, Spanish lender Banco Santander sank 2.9%, while Deutsche Bank was down 1.6%.

Italian banks were also lower after ratings agency Moody’s said late Friday that it placed Italy’s sovereign debt rating under review, pending a downgrade.

Unicredit shares tumbled 3%, Intesa Sanpaolo fell 2.75%, while shares in Banco Popolare di Milano plunged 7%.

Meanwhile, oil producers were pressured after crude prices tumbled to a four-month low on the New York Mercantile Exchange. Italy’s largest oil producer EniSpa slumped 2.15%, French-based TOTAL was down 1.5%, while British Petroleum saw shares decline 1.1%.

In London, the commodity-heavy FTSE 100 retreated 1% as shares in miners led losses after commodity prices declined. BHP Billiton shares dropped 1.5%, Rio Tinto slumped 1.6%, while shares of silver producer Fresnillo sank 2.9%.

Major U.K. banks were also broadly lower, with Lloyds Banking Group tumbling 2.9%, while shares in Royal Bank of Scotland and Barclays each fell 2.5%. 

The outlook for U.S. equity markets was downbeat. The Dow Jones Industrial Average futures pointed to a loss of 0.52%, S&P 500 futures indicated a drop of 0.5%, while the Nasdaq 100 futures shed 0.53%.   

With no major economic events scheduled for later in the day, markets turned their focus to the U.S. Federal Reserve’s policy setting meeting later in the week, which was to be followed with a press conference by Fed Chairman Ben Bernanke.