EUROPE MARKETS: European Stocks Grapple With Lower Liquidity, Oil-price Volatility
May 25 2017 - 5:49AM
Dow Jones News
By Carla Mozee, MarketWatch
Petrofac shares plunge
European stocks swung between gains and losses Thursday,
hampered by lower volume and a flip lower in oil prices before a
production decision from the Organization of the Petroleum
Exporting Countries.
The Stoxx Europe 600 fell 0.2% to 391.62, with only the
utilities and consumer goods sectors holding higher, but the index
has been darting in and out of negative territory.
While major stock exchanges were open Thursday, Germany and
Switzerland were among the countries observing the Ascension
holiday.
Germany's DAX was down 0.1% at 12,631.35, but itself has been
higher during the session.
Intraday, the "DAX took a 100+ point plunge in the space of a
few minutes. This looks likely to be the result of a bank holiday
in Germany that makes for thinner liquidity and higher volatility
as a result," said Neil Wilson, senior market analyst at ETX
Capital, in a note.
"It's all very thin and choppy out there with French banks also
closed today."
France's CAC 40 index was up 0.2% at 5,354.47, but has also
sported losses. Italy's FTSE MIB was down 0.2% while Spain's IBEX
35 was up 0.5%.
The U.K.'s FTSE 100 was up 0.1%
(http://www.marketwatch.com/story/ftse-100-wobbles-with-opec-decision-in-sight-2017-05-25)
at 7,522.
Oil: The Stoxx Europe 600 Oil & Gas Index fell 0.8%,
reversing course after oil prices retreated from gains. The drive
lower came after Saudi Arabia's oil minister Khalid al-Falih ruled
out deeper cuts to oil production
(http://www.marketwatch.com/story/oil-prices-turn-sharply-lower-after-saudi-oil-minister-rules-out-deeper-cuts-2017-05-25)
in any extension to an OPEC output deal.
Oil prices have been climbing in recent weeks in anticipation
that OPEC and non-OPEC members would extend production cuts that
were agreed last November as they worked to tackle global oil
oversupply. But investors appeared disappointed that deeper cuts
may not be announced.
OPEC's production announcement isn't expected to arrive before 4
p.m. London time, or 11 a.m. Eastern Time.
In the European oil group, Italian oil producer Eni SpA (ENI.MI)
dropped 0.9%, BP (BP.LN) (BP.LN) gave up 0.9% and France's Total SA
(TOT) (TOT) shed 0.3%. Among oil services providers, Amec Foster
Wheeler PLC (AMFW.LN) fell 3.7% and Saipem (SPM.MI) gave up
1.2%.
Read:4 potential outcomes for OPEC's crucial meeting
(http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)
Meanwhile, shares of Petrofac Ltd. (PFC.LN) plunged 19% after
the oil services company said it suspended Chief Operating Officer
Marwan Chedid until further notice
(http://www.marketwatch.com/story/petrofac-suspends-coo-as-uk-conducts-probe-2017-05-25).
Petrofac is under U.K. investigation on suspicion of bribery,
corruption and money laundering, and the company has said it's
cooperating with authorities. Chedid has resigned from Petrofac's
board.
Stock movers: Daily Mail & General Trust PLC (DMGT.LN) slid
8.1% after posting a 76% fall in pretax profit
(http://www.marketwatch.com/story/daily-mail-general-trust-pretax-profit-slides-2017-05-25)
for the first half of fiscal 2017 as it booked costs related to the
company's restructuring. The result was in line with the
expectations set by the company, whose portfolio of businesses
include the Daily Mail newspaper.
Intesa Sanpaolo SpA shares (ISP.MI) fell 1.1% after a downgrade
to hold from buy at Jefferies, which said "valuation looks full
with catalysts near-term less clear." A price-target lift to
EUR2.90 from EUR2.70 a share no longer leaves sufficient upside to
justify a buy rating, Jefferies said in a note about European
banks.
(END) Dow Jones Newswires
May 25, 2017 05:34 ET (09:34 GMT)
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