Investing.com - European stock markets extended losses on Tuesday, as ongoing concerns over the debt crisis in the euro zone continued to weigh on investor confidence.
During European afternoon trade, the EURO STOXX 50 plummeted 1.91%, France’s CAC 40 tumbled 1.90%, while Germany’s DAX 30 plunged 1.88%.
Market sentiment was hit after a rise in Italian and Spanish bond yields underscored the challenges facing European leaders as they continue to struggle to contain the region's debt crisis.
Also Tuesday, a preliminary report showed that gross domestic product in the euro zone increased by 0.2% during the third quarter, in line with expectations, easing concerns over a slowdown in the single currency bloc.
Elsewhere, the ZEW index of German economic sentiment tumbled to a three-year low this month, as political uncertainty in Greece and Italy weighed on the outlook for the region.
Financial stocks continued to drop, as France's BNP Paribas and Societe Generale plunged 6.38% and 3.82%, closely followed by Italian lenders Unicredit and Intesa Sanpaolo, with shares plummeting 5.68% and 2.44% respectively.
Meanwhile, German lenders Deutsche Bank and Commerzbank saw shares decline 2.86% and 3.53%.
French carmaker Peugeot Citroen posted a 2.94% loss after saying that it will cut at least 4,000 jobs in France next year as part of a wide-ranging cost-cutting plan.
Elsewhere, Italy's second largest industrial group, Finmeccanica extended earlier losses, with shares sinking 15.56% after announcing that it will sell EUR1 billion in assets due to loss predictions for this year.
Also in company news, shares in Kabel Deutscheland, Germany's largest cable operator declined 2.97% after predicting sales growth in 2011 at the lower end of its forecast range of 6.25% to 6.75%.
In London, FTSE 100 declined 1.08% as U.K. lenders tracked their European counterparts lower.
Shares in Barclays tumbled 3.66% and the Royal Bank of Scotland dove 3.56%, while Lloyds Banking and HSBC Holdings saw shares plummet 3.40% and 2.43% respectively.
The energy sector also extended earlier losses, as mining giants Rio Tinto and Bhp Billiton dipped 0.72% and 1.70%, while British Petroleum tumbled 1.05%.
Meanwhile, copper producers Xstrata and Kazakhmys plunged 3.35% and 2.30% respectively.
Elsewhere, telecommunications firm Cable and Wireless Worldwide continued to plummet, with shares sinking 14.77% after the company suspended dividend payments and named Gavin Darby as chief executive officer.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.88%, S&P 500 futures signaled a 1.02% drop, while the Nasdaq 100 futures indicated a 0.93% decline.
During European afternoon trade, the EURO STOXX 50 plummeted 1.91%, France’s CAC 40 tumbled 1.90%, while Germany’s DAX 30 plunged 1.88%.
Market sentiment was hit after a rise in Italian and Spanish bond yields underscored the challenges facing European leaders as they continue to struggle to contain the region's debt crisis.
Also Tuesday, a preliminary report showed that gross domestic product in the euro zone increased by 0.2% during the third quarter, in line with expectations, easing concerns over a slowdown in the single currency bloc.
Elsewhere, the ZEW index of German economic sentiment tumbled to a three-year low this month, as political uncertainty in Greece and Italy weighed on the outlook for the region.
Financial stocks continued to drop, as France's BNP Paribas and Societe Generale plunged 6.38% and 3.82%, closely followed by Italian lenders Unicredit and Intesa Sanpaolo, with shares plummeting 5.68% and 2.44% respectively.
Meanwhile, German lenders Deutsche Bank and Commerzbank saw shares decline 2.86% and 3.53%.
French carmaker Peugeot Citroen posted a 2.94% loss after saying that it will cut at least 4,000 jobs in France next year as part of a wide-ranging cost-cutting plan.
Elsewhere, Italy's second largest industrial group, Finmeccanica extended earlier losses, with shares sinking 15.56% after announcing that it will sell EUR1 billion in assets due to loss predictions for this year.
Also in company news, shares in Kabel Deutscheland, Germany's largest cable operator declined 2.97% after predicting sales growth in 2011 at the lower end of its forecast range of 6.25% to 6.75%.
In London, FTSE 100 declined 1.08% as U.K. lenders tracked their European counterparts lower.
Shares in Barclays tumbled 3.66% and the Royal Bank of Scotland dove 3.56%, while Lloyds Banking and HSBC Holdings saw shares plummet 3.40% and 2.43% respectively.
The energy sector also extended earlier losses, as mining giants Rio Tinto and Bhp Billiton dipped 0.72% and 1.70%, while British Petroleum tumbled 1.05%.
Meanwhile, copper producers Xstrata and Kazakhmys plunged 3.35% and 2.30% respectively.
Elsewhere, telecommunications firm Cable and Wireless Worldwide continued to plummet, with shares sinking 14.77% after the company suspended dividend payments and named Gavin Darby as chief executive officer.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a fall of 0.88%, S&P 500 futures signaled a 1.02% drop, while the Nasdaq 100 futures indicated a 0.93% decline.