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European stocks slump on Greece fears; DAX down 0.35%

Forex Pros - European stock markets were broadly lower on Monday, as shares in the financial sector led markets lower amid lingering concerns over the region's peripheral sovereign debt crisis, while U.S. futures indexes pointed to a higher open on Wall Street.

During European morning trade, the EURO STOXX 50 slumped 0.55%, France's CAC 40 dipped 0.3%, while Germany's DAX 30 shed 0.35%.

European Union leaders agreed in an unannounced meeting late Friday to ease the terms of the EUR110 billion bailout Greece received last year. The meeting came after a report in Germany's Spiegel magazine that Greece may withdraw from the euro zone.

Meanwhile, Pat Rabbitte, Irish minister for communications, energy and natural resources, has told Irish broadcaster RTE Radio that any concessions for Greece should also lead to improved terms for Ireland.

Europe's largest banking group BNP Paribas dropped 2.1%, Italy's biggest bank Unicredit saw shares slump 2.05%, while Spanish lender Banco Santander declined 1.6%.

Meanwhile, shares in insurance provider Munich Re slumped 1.1% after reporting that it swung to a first quarter loss of EUR947 million, as results were weighed by a heavy claims burden from catastrophes in Japan, Australia and New Zealand.

In London, the commodity-heavy FTSE 100 edged 0.2% higher as shares in platinum producer Lonmin jumped 2% after reporting first half net profit tripled to GBP54 million, as revenue grew 42% to GBP9571 million. The group said the results were driven by a 9% rise in platinum volumes to 318,306 ounces as well as a "robust pricing environment" during the quarter.

Meanwhile, shares in mining giant BHP Billiton climbed 1.3%, rival Rio Tinto added 1.65%, while silver producer Fresnillo saw shares rise 1.75% after silver prices rebounded from the biggest weekly decline since 1980.

The outlook for U.S. equity markets, meanwhile, was upbeat ahead of earnings reports from packaged-food giant Tyson Foods and food-service distributor Sysco.

The Dow Jones Industrial Average futures pointed to a gain of 0.6%, S&P 500 futures indicated an increase of 0.7%, while the Nasdaq 100 futures climbed 0.9%.

Later in the day, the euro zone was to publish a report on Sentix investor confidence, while the U.S. had no major data releases scheduled.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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