Investing.com - European stocks moved lower on Monday, as a decline in oil prices weighed on the energy sector and as concerns over an upcoming referendum in Italy dampened market sentiment.
During European morning trade, the EURO STOXX 50 retreated 0.89%, France’s CAC 40 lost 0.95%, while Germany’s DAX 30 slid 0.86%.
On December 4, Italian citizens are set to vote in a referendum on whether to overhaul their national constitution, which should help Prime Minister Matteo Renzi implement badly needed economic reforms.
The vote is widely seen as determining Renzi's political fate seeing as he may resign if a "no" vote prevails. The latest opinion polls show most Italians opposing the proposed constitutional changes.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) tumbled 1.55% and 1.43%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) lost 1.63% and 2.91%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) plummeted 2.52% and 3.60% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) declined 0.94% and 1.12%.
Energy stocks added to losses, as oil prices declined on Monday ahead of OPEC’s highly-anticipated meeting this week.
French oil and gas major Total SA (PA:TOTF) retreated 1.36% and Italy’s ENI (MI:ENI) tumbled 1.72%, while Norwegian rival Statoil (OL:STL) also lost 1.72%.
Elsewhere, Allianz (DE:ALVG) SE lost 1.51% after the German insurance group said on Friday that it had reached an agreement with utilities group E.ON SE NA (DE:EONGn) to purchase a 30% stake in E.ON Distributie Romania, an electricity and gas distribution network operator in the northern part of Romania.
Shares in E.ON were up 0.18% on Monday morning.
In London, FTSE 100 retreated 0.93%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in Lloyds Banking (LON:LLOY) tumbled 1.41% aand HSBC Holdings (LON:HSBA) declined 1.70%, while Barclays (LON:BARC) and the Royal Bank of Scotland (LON:RBS) plummeted 1.94% and 2.41% respectively.
The energy sector was also in the red, with BP (LON:BP) shares down 1.52% and Royal Dutch Shell (LON:RDSa) plunging 1.87%,
Meanwhile, mining stocks were broadly higher. Glencore (LON:GLEN) climbed 0.61% and Antofagasta (LON:ANTO) gained 0.69%, while Randgold (LON:RRS) ressources and Fresnillo (LON:FRES) rallied 1.84% and 2.92% respectively.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.43% loss, S&P 500 futures showed a 0.46% decline, while the Nasdaq 100 futures indicated a 0.42% drop.