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European stocks sharply lower after Barcelona attack; Dax down 0.69%

Published 08/18/2017, 03:32 AM
Updated 08/18/2017, 03:32 AM
© Reuters.  Spanish stock exchange

© Reuters. Spanish stock exchange

Investing.com - European stocks opened sharply lower on Friday, as market sentiment weakened following news of a terrorist attack in Barcelona, Spain, while political turmoil in the U.S. also continued to rattle investors’ confidence.

During European morning trade, the EURO STOXX 50 retreated 0.89%, France’s CAC 40 tumbled 0.90%, while Germany’s DAX 30 declined 0.69% and Spain’s IBEX 35 lost 0.98%

Sentiment was hit after a van rammed into pedestrians in a crowded tourist area of Barcelona on Thursday evening, killing at least 13 people and injuring 100 others.

The Islamic State claimed responsibility for the incident. Spanish police said that two men had been arrested so far.

Shortly after, a second attack was perpetrated in Cambrils, a coastal town south of Barcelona, where police said they killed five attackers.

Markets were also jittery after eight chief executives quit two business advisory councils on Wednesday in protest over U.S. President Donald Trump’s controversial remarks on weekend violence in Virginia.

The news added to concerns over the U.S. administration’s ability to implement its political agenda.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) tumbled 1.71% and 1.32%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 1.19% and 2.22%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) declined 0.88% and 1.36% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) plummeted 1.52% and 1.87%.

Elsewhere, Deutsche Lufthansa (DE:LHAG) saw shares plunge 2.08%, as the company was set to attend a first round of formal talks for the sale of insolvent German airline Air Berlin's assets on Friday, ahead of other prospective bidders.

In London, FTSE 100 dropped 0.61%, as U.K. lenders tracked their European counterparts lower.

Shares in HSBC Holdings (LON:HSBA) and Barclays (LON:BARC) declined 0.66% and 0.68% respectively, while Lloyds Banking (LON:LLOY) dropped 0.65%, while the Royal Bank of Scotland (LON:RBS) tumbled 1.16%.

EasyJet PLC (LON:EZJ) was the worst performer on the index, with shares diving 3.15%, followed closely by IAG (LON:ICAG) and Ashtead Group (LON:AHT), down 2.96% and 1.90% respectively.

Meanwhile, mining stocks were broadly higher on the commodity-heavy index. Shares Glencore (LON:GLEN) added 0.22% and and Fresnillo (LON:FRES) rose 0.32%, while Rio Tinto (LON:RIO) advanced 0.93% and Randgold Resources (LON:RRS) rallied 1.62%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% dip, S&P 500 futures signaled a 0.01% uptick, while the Nasdaq 100 futures indicated a 0.06% gain.

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