(MENAFN- FxPro) European stocks declined sharply on Thursday, as concerns over a potential Greek default intensified, weighing broadly on equity markets.
During European morning trade, the EURO STOXX 50 lost 1.36%, France's CAC 40 plummeted 1.65%, while Germany's DAX 30 tumbled 1.20%.
Equity markets were hit after Greek Prime Minister Alexis Tsipras rejected on Wednesday proposals by European leaders and the International Monetary Fund to help unlock more aid.
Athens has to make four payments totaling more than ‚¬1.5 billion to the IMF this month. Tsipras indicated that Greece won't miss the first installment due Friday.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) tumbled 1.34% and 0.99%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) lost 0.15% and 0.57%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) slid 0.64%, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) retreated 0.91% and 1.17% respectively.
Elsewhere, Deutsche Telekom (XETRA:DTEGn) rallied 1.73% amid reports Mobile US Inc., which is owned by the German company, is in talks to merge with DISH Network Corporation (NASDAQ:DISH).
Shares in Syngenta AG (SIX:SYNN) jumped 1.80% after Reuters reported that BASF SE (XETRA:BASFN) is considering an offer to buy the Swiss maker of agrochemicals.
In London, commodity-heavy FTSE 100 declined 0.80%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LONDON:RIO) retreated 0.99% and Glencore Xstrata (LONDON:GLEN) lost 1.21%, while Bhp Billiton (LONDON:BLT) and Anglo American (LONDON:AAL) plummeted 1.35% and 1.84% respectively.
Financial stocks were also broadly lower, as the Royal Bank of Scotland (LONDON:RBS) slid 0.37% and HSBC Holdings (LONDON:HSBA) dropped 0.50%, while Barclays (LONDON:BARC) declined 0.57% and Lloyds Banking (LONDON:LLOY) retreated 0.71%.
Meanwhile, easyJet Plc (LONDON:EZJ) climbed 1.17%, leading gains on the index, after saying passengers increased in the 12 months through May.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.52% decline, S&P 500 futures signaled a 0.50% drop, while the Nasdaq 100 futures indicated a 0.69% loss.
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