Oil Producers Drag European Stocks Lower as OPEC Cut UnderwhelmsBy
European stocks declined, extending their drop for a second week, as energy producers retreated after an OPEC output deal failed go beyond a plan flagged days earlier.
The Stoxx Europe 600 Index dropped 0.2 percent at the close, also weighed down by losses in bank shares. Oil-and-gas stocks on Friday deepened this year’s worst performance among industry groups.
- Oil is poised to decline for the week following yesterday’s slump, the biggest in three weeks, after OPEC moved to prolong supply cuts for nine months.
- “The lack of deeper cuts, or a longer duration, sent the WTI below $48.92,” Ipek Ozkardeskaya, a market analyst at London Capital Group, wrote in a note, referring to the the benchmark West Texas Intermediate crude future. “Failure to regain this level would suggest a short-term bearish reversal on the pre-OPEC positive trend.”
- The exporter-heavy FTSE 100 Index added 0.3 percent to close at a record high. The FTSE 250 Index of midcaps added 0.3 percent and earlier surpassed the 20,000 level intraday for the first time.
- After years of currency weakness boosting companies dependent on overseas sales amid unprecedented monetary stimulus, stocks reliant on the domestic economy are beginning to outperform in Europe as the euro strengthens. Strategists from firms including JPMorgan Chase & Co., BNP Paribas SA and Kepler Cheuvreux SA say the trend will pick up pace.
— With assistance by Aleksandra Gjorgievska, and Elena Popina