Europe markets fall; oil puts pressure on energy stocks
December 28 2015 11:40 PM
Traders work at the Frankfurt Stock Exchange. The DAX was off 0.7% at the close yesterday.


World stocks fell yesterday as a weakening economic outlook for powerhouse China and renewed falls in the oil price prompted a sell-off.
European oil stocks and some industrials came under pressure from the twin impact of weak oil prices and ominous slowdown signs from Asia.
In Paris, the CAC 40 extended opening losses to close 1.0% lower, while Frankfurt’s DAX was off 0.7% at the close.
US and European markets had refrained from major swings in their final sessions on Thursday before the festive break, avoiding fireworks after heavy volatility in the preceding days.
“The between-the-holidays period has never been much of one for Turnover was muted, however, with many operators still on end-year breaks and the key London exchange closed for a bank holiday.
Wall Street was down 0.5% in late morning New York trading, and the Nasdaq fell 0.8%.
But Disney shares jumped on record ticket sales for “Star Wars” and Amazon gained on higher holiday subscriptions in New York.
Also in New York, the oil price dropped below $37, with WTI February oil futures down 3.7% at $36.68 and Brent Crude down 3.3% at $36.64.
The Russian rouble hit a 2015 low amid oil woes yesterday, and even top exporter Saudi Arabia is feeling the pinch, projecting an $87bn deficit for 2016, its third annual shortfall in a row.
big movements in the financial markets,” said Barclays Bourse analyst Philippe Cohen.
In Asia, markets broadly fell as a decline in profits at China’s industrial firms reignited worries about the world’s number two economy, but bargain-buying helped Tokyo snap a five-day losing streak.
Industrial profits slid 1.4% to 672.1bn yuan ($104bn) in November, according to data released on Sunday by China’s National Bureau of Statistics.
“We see weakness across industries, with few signs of improvement,” Steve Wang, chief China economist at Reorient Financial Markets in Hong Kong, told Bloomberg News.
The fresh figures weighed on mainland markets with Shanghai down 2.59% and Shenzhen off 2.18% by the close.
Shares in China Telecom dropped as much as 3% after news its head was under investigation for “severe disciplinary violations”, the latest high-profile target in a corruption crackdown.
In Frankfurt, the DAX 30 down 0.7% at 10,653.91 points and Paris - CAC 40 fell 1.0% at 4,617.95 points at the close yesterday. London bourse closed for a public holiday.

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