2017.04.1106:18:00UTC+00European Markets Lower as G-7 Meeting Eyed

European equities edged down as heightened political risks in the Korean Peninsula contributed to uncertainty on the upcoming French election. Investors were risk-averse as the meeting of foreign ministers of the Group of Seven (G7) nations were also in focus.

The pan-European Euro Stoxx 600 slipped 0.1 percent following the open with sectors and major bourses mixed. Financials and technology stocks were among the worst performers in early deals. The VStoxx Index of euro-area volatility rose 4.6 percent, moving towards its highest level since the U.S. election.

Banks dropped with bond yields amid tensions while an Ifop poll in France revealed a lead for leftist candidate Jean-Luc Mélenchon over rival François Fillon. Germany's Deutsche Bank and Commerzbank were both down 0.9 percent while France's BNP Paribas and Societe Generale each slipped 0.9 percent.

Banco Popular extended declines from the session earlier as it seeks another capital hike to cleanse a balance sheet that contains billions of euros in toxic assets. Shares of Spain's embattled lender fell 5.3 percent. German manufacturer Dialog Semiconductor plunged 24 percent after brokerage Bankhaus Lampe downgraded its rating from “hold” to “sell” prior to Tuesday's open.