European stocks have slid into negative territory amid gloomy sentiment in global markets.
The pan-European Stoxx 600 dropped 0.5% by mid-morning Tuesday (October 12), paring its earlier losses. Basic resources fell 1.6% while utilities gained 0.5%, the only sector to post an increase.
The negative start for Europe comes after a choppy period for global stock markets. A day earlier, European stocks were muted during the trading session, searching for direction after a volatile week of trading.
Meanwhile, U.S. stocks fell Monday as investors looked at surging oil prices, economic worries and major earnings results coming later this week.
The Dow Jones Industrial Average shed 250 points, or 0.7%, to close at 34,496.06. The S&P 500 ticked lower by 0.7% to 4,361.19. The Nasdaq Composite fell 0.6% to 14,486.20.
Investors are bracing for a slew of U.S. earnings this week, with major banks revealing third-quarter results this week; JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are all due to report beginning on Wednesday (October 13).
Overnight, shares in Asia-Pacific fell, with major indexes from Japan to Hong Kong declining at least 1%.
Investors in the region were keeping a close eye on oil prices, which slipped in Asia trading hours, taking a pause following a recent surge above $80 U.S., before regaining momentum to continue climbing higher.
International benchmark Brent crude futures was last seen at $83.92 U.S. per barrel, while U.S. crude futures sat at $80.70 U.S. per barrel.
On the economic data front, the U.K. added 207,000 jobs in September, official figures showed, taking British employers’ payrolls to a record high as the end of the government’s furlough program draws close.
In terms of individual share price movement, London-based fintech company Wise dropped 8% in early trading, while at the top of the Stoxx 600, German manufacturer Gerresheimer added 4.2%.
