European shares retreat at the open as investors shun risk

Major European indices have begun the session in the red, with losses spread right across the region. The weak start follows the turnaround selling on Wall Street overnight, which has left broader market sentiment brittle. Spain and Italy are posting the steepest falls, while the DAX and Eurostoxx are also coming under heavy pressure.

At the open, the picture looked like this:

• Eurostoxx -0.9%
• Germany DAX -0.9%
• France CAC 40 -0.5%
• UK FTSE 100 -0.3%
• Spain IBEX -1.1%
• Italy FTSE MIB -1.1%

The session shapes up as a difficult one, since European benchmarks must also absorb the late slide in US equities yesterday. Relentless selling gives dip buyers little reassurance, all the more so because political uncertainty in the US around today's midterm elections adds a further reason for caution.

US futures look softer today as well after Apple's earnings failed to enthuse, with S&P 500 futures 0.2% lower and Nasdaq futures flat at present. Attention will focus on whether Apple drags wider tech sentiment into the mud once more later today, and whether any hint of a rebound can survive the hours ahead.

For the moment the mood is uneasy, and European investors are finding it hard to gain a foothold while markets more widely stay unwilling to take on additional risk.