(MENAFN- FxPro) European stocks opened sharply lower on Monday, as market sentiment was hit after Greek voters overwhelmingly rejected conditions of a rescue package from creditors on Sunday.
During European morning trade, the EURO STOXX 50 plummeted 1.50%, France's CAC 40 retreated 1.36%, while Germany's DAX 30 lost 1.07%.
The result of the referendum has added to doubts over Greece's future in the euro zone and deepened a standoff with its lenders.
European officials have indicated that they will only continue to finance Greece in return for far-reaching economic reforms.
Greek Prime Minister Alexis Tsipras welcomed the outcome of the vote and said Athens was returning to negotiations with the express goal of reopening banks, which have been shut for over a week after capital controls were imposed.
Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days.
Euro zone leaders were expected to hold a conference on Tuesday night to discuss the aftermath of the Greek referendum.
Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) plummeted 2.10% and 2.22%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) tumbled 1.30% and 2.19%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) plunged 3.02% and 3.05% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) lost 2.14% and 2.27%.
The auto sector was also on the downside, as shares in French carmaker Peugeot SA (PARIS:PEUP) plummeted 1.62% and German rival Volkswagen (XETRA:VOWG) dropped 0.97%, while Italy's Fiat Chrysler (NYSE:FCAU) Automobiles NV (MILAN:FCHA) lost 1.52%.
In London, FTSE 100 declined 0.68%, led by Rolls-Royce, whose shares plunged 8.52% after the luxury automaker downgraded its profit forecasts for this year and next, citing continued weakness in oil and gas markets.
Financial stocks added to losses, as Lloyds Banking (LONDON:LLOY) slid 0.78% and Barclays (LONDON:BARC) tumbled 1.27%, while HSBC Holdings (LONDON:HSBA) and the Royal Bank of Scotland (LONDON:RBS) plummeted 1.54% and 1.56% respectively.
In the mining sector, stocks were also broadly lower. Shares in Bhp Billiton (LONDON:BLT) retreated 1.06% and 1.08% respectively, while Glencore Xstrata (LONDON:GLEN) lost 1.21% and Antofagasta (LONDON:ANTO) plunged 1.54%.
In the U.S., equity markets pointed to a dropped open. The Dow Jones Industrial Average futures pointed to a 0.57% drop, S&P 500 futures signaled a 0.55% decline, while the Nasdaq 100 futures indicated a 0.50% slide.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.