🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Miners, oil drag European shares to 2-week low; volatility jumps

Published 18/04/2017, 07:31 pm
© Reuters.  Miners, oil drag European shares to 2-week low; volatility jumps
UK100
-
FCHI
-
C
-
BP
-
EQNR
-
AAL
-
BHPB
-
MT
-
GLPG
-
PNDORA
-
STOXX
-
SXEP
-
SXPP
-
ORSTED
-
UN0k
-

* STOXX 600 down 0.8 pct

* VSTOXX hits highest since Dec 2016

* Miners, oil stocks biggest fallers (Recasts, adds quotes and detail, updates prices)

By Kit Rees

LONDON, April 18 (Reuters) - Commodity-linked stocks sent European shares to two-week lows on Tuesday in a choppy start to the session, as uncertainty hung over the looming first round of France's presidential election.

The pan-European STOXX 600 .STOXX index was down 0.8 percent, while Britain's FTSE 100 .FTSE fell 1 percent. France's CAC .FCHI dropped 1 percent.

The basic resources sector .SXPP was the biggest sectoral faller, down 2.4 percent, with analysts saying a slump in iron ore prices was weighing on miners. in steel miner ArcelorMittal ISPA.AS , Anglo American AAL.L and BHP Billiton BLT.L fell 3.2 to 5.6 percent.

Oil & gas .SXEP shares also fell 1.5 percent as the price of oil edged down following an expected climb in U.S. output. O/R

Oil firms Statoil STL.OL and BP BP.L both declined more than 2.7 percent.

Europe's VSTOXX volatility index .V2F7 hit its highest level since December 2016 ahead of the first round of the French presidential elections, and amid rising geopolitical tensions after North Korea's failed missile test over the weekend.

"It's not a coincidence that the French CAC index was one of the biggest fallers today, because ... French election risk is coming to the fore," Jasper Lawler, senior market analyst at London Capital Group, said.

"The polls are neck-and-neck at the moment, so it seems a good chance that a political outsider is going to win."

A poll released by Ifop-Fiducial saw centrist Emmanuel Macron leading the first round of the French election with 23 percent, followed closely by far-right Marine Le Pen with 22 percent and far-left Jean-Luc Melenchon with 19.5 percent. Pandora PNDORA.CO was the worst performing stock on the STOXX 600, down over 8 percent at its lowest level since August 2015 after Nordic broker Carnegie downgraded the stock to "hold" from "buy". Energy DENERG.CO was also on the backfoot after Citigroup (NYSE:C) cut its rating to "neutral", sending it 3.6 percent lower.

"Following +11% share price performance over the past 9m, disappointing and potentially value destructive German offshore wind auction price, as well as the widely expected possible further placing of 7% of DONG Energy share in May by New Energy, we downgrade DONG Energy to Neutral," Jenny Ping, analyst at Citigroup, said in a note.

Among risers, biotech firm Galapagos GLPG.AS jumped 3.3 percent after raising $338 million gross proceeds in a U.S. public offering, while Germany's Uniper UN01.DE gained 2.3 percent after SocGen raised its rating on the stock to "buy" from "hold".

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.