EUROPE MARKETS: European Stocks Down For Third Straight Day As Commodity Shares Pull Back
26 October 2016 - 9:00PM
Dow Jones News
By Carla Mozee, MarketWatch
Statoil, Tullow among the day's notable losers
European stocks struggled Wednesday, with investors expressing
disappointment over a new round of financial updates while oil
prices were under pressure.
The Stoxx Europe 600 gave up 0.6% to 340.88 as only the
defensive utilities sector notched a fractional gain. The benchmark
was facing its third straight loss. On Tuesday, it fell 0.4%
The oil and gas sector was the worst performing as West Texas
Intermediate crude futures slumped 1.5% and traded below $50 a
barrel. Brent crude was down more than 1%, clinging just above $50
a barrel.
Oil's losses come as "fears mount that the proposed OPEC
production cuts won't be implemented as planned and with
expectations being that we will see a build in stocks when [U.S.]
inventory data is released later in the session, downside pressures
could continue to mount here," said Tony Cross, market analyst for
TopTradr, in a note.
Among oil producers, Statoil ASA (STL.OS) was off 1.7%,
Portugal's Galp Energia (GALP.LB) gave up 1.5% and Tullow Oil PLC
(TLW.LN) shed 2.7%. Meanwhile, shares of Italian energy engineering
services company Saipem SpA (SPM.MI) fell 6.5% .
Weekly oil supply data are due later Wednesday from the U.S.
Energy Information Administration. Late Tuesday, figures from the
American Petroleum Institute showed U.S. crude stockpiles jumped
4.8 million barrels
(http://www.marketwatch.com/story/oil-futures-drop-as-sources-say-api-data-show-us-crude-supply-up-48-mln-barrels-2016-10-25)
in the week ended Oct. 21, and analysts polled by S&P Global
Platts had forecast an increase of 400,000 barrels in
stockpiles.
Elsewhere in the commodities space, shares of Antofagasta PLC
(ANTO.LN) fell 6.6% after the miner said it expects this year's
copper output to be close to the lower end
(http://www.marketwatch.com/story/antofagasta-copper-output-up-reaffirms-guidance-2016-10-26)
of its forecast of 710,000-740,000 tons.
Other movers: Kering shares (KER.FR) leapt 7.7% after the
luxury-goods maker said quarterly sales climbed 10%
(http://www.marketwatch.com/story/kerings-sales-jump-helped-by-turnaround-at-gucci-2016-10-26),
aided by a turnaround at Gucci, it's largest brand.
Novozymes A/S (NZYM-B.KO) plunged 12% after the Danish enzymes
maker's third-quarter quarterly earnings came in below expectations
and the company reduced its fiscal-year forecast.
Airbus Group SE (AIR.FR) shares rose 1.6%, pushing past the
aircraft maker's report that its most closely watched earnings
measure fell 21%
(http://www.marketwatch.com/story/airbus-quarterly-profit-falls-sales-slip-2016-10-26).
Indexes: Germany's DAX 30 fell 1.1% to 10,637.28, and France's
CAC 40 fell 0.9% to 4,498.26.
The U.K's FTSE 100 lost 1.1% to 6,944.41 and Italy's FTSE MIB was down 0.5% to 17.139.23.
The euro was changing hands at $1.0925, up from $1.0885 late
Tuesday in New York.
(END) Dow Jones Newswires
October 26, 2016 05:45 ET (09:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024