Investing.com - European stocks remained lower in subdued trade on Monday, as markets recovered from the previous week''s rally due to European Central Bank President Mario Draghi''s comments.
During European afternoon trade, the DJ Euro Stoxx 50 shed 0.29%, France’s CAC 40 declined 0.40%, while Germany’s DAX edged down 0.17%.
European equities strengthened last Thursday after ECB President Mario Draghi reiterated the bank’s forward guidance that rates will remain on hold at present or lower levels for an extended period.
He emphasized that "the governing council is also unanimous in its commitment to use unconventional instruments'' if necessary, to address the risk of too-prolonged period of low inflation.”
Markets were also jittery after International Monetary Fund chief Christine Lagarde warned over the weekend that the pace of global growth may be weaker than expected in the second half of the year due to weak investment.
Financial stocks turned broadly lower, as French lender BNP Paribas (PARIS:BNPP) slid 0.36%, while Germany''s Commerzbank and Deutsche Bank retreated 0.79% and 0.92%.
Among peripheral lenders, Italy''s Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) tumbled 1.13% and 1.28% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) dropped 0.56% and 0.85%.
Elsewhere, Helvetia (SIX:HELN) declined 0.69% after the agreed to buy a majority stake in Nationale Suisse in a transaction valuing the company at about 1.77 billion Swiss francs to create Switzerland’s third-largest insurer.
In London, commodity-heavy FTSE 100 slipped 0.18%, still weighed by losses in the mining sector.
Shares in Glencore Xstrata (LONDON:GLEN) declined 0.48% and Rio Tinto (LONDON:RIO) retreated 0.85%, while Fresnillo (LONDON:FRES) and Antofagasta (LONDON:ANTO) plummeted 1.24% and 1.96% respectively.
Sabmiller (LONDON:SAB) added to losses, down 0.85%, after the brewer announced that it will be selling its $1.09 billion stake in Tsogo Sun Holdings following a review of its holding in the South African hotel and casino operator.
Meanwhile, financial stocks turned broadly lower, as the Royal Bank of Scotland (LONDON:RBS) edged down 0.15% and Lloyds Banking (LONDON:LLOY) fell 0.29%, while Barclays (LONDON:BARC) and HSBC Holdings (LONDON:HSBA) dropped 0.40% and 0.50%.
In the U.S., equity markets pointed to a moderately lower open. The Dow 30 futures pointed to a 0.12% fall, S&P 500 futures signaled a 0.05% dip, while the Nasdaq 100 futures indicated a 0.09% loss.
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