European Stocks Down on Weak Oil Price, Decline in Bank Shares

European stock markets opened lower Tuesday as recent declines in the oil price, a continued fall in bank shares and a lackluster session in Asia took a toll.

The Stoxx Europe 600 edged down 0.7% in the early minutes of trading, with losses concentrated in the banking, auto and energy sectors.

U.S. oil prices were last up 0.4% at $40.20 a barrel after falling below $40 for the first time since April on Monday and entering a bear market. The growing global supply of the commodity could drag prices back down to around $35 a barrel in the near term, analysts say, renewing pain for the energy sector and its lenders.

European bank shares also continued to decline in the aftermath of Friday's stress-test results. Shares of Credit Suisse Group AG, UBS Group AG and Commerzbank AG fell around 5% in early trade.

Earlier, stocks in Japan fell 1.5% as investors waited for details of Prime Minister Shinzo Abe's stimulus plan. Shares in Australia were down 0.8% after its central bank cut interest rates to a record low as widely expected. The Shanghai Composite Index added 0.6%, while trading in Hong Kong was suspended due to a typhoon.

The Dow Jones Industrial Average ended a touch lower Monday for a sixth consecutive day, as a steep fall in the energy sector dragged down broader indexes.

Kenan Machado and Jenny Hsu contributed to this article

Write to Riva Gold at [e-mail]

(END) Dow Jones Newswires

August 02, 2016 04:35 ET (08:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.