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European Equities Fall as Oil Price Drop

By Investors Hub

European stocks have fallen sharply on Wednesday as oil prices have dropped, geopolitical risks have returned to the fore and uncertainty has continued over the formation of an anti-establishment government in Italy.

There was also no respite on the data front as flash survey data from IHS Markit showed that the Eurozone private sector grew at the slowest pace in one-and-a-half years in May. The composite output index dropped to an 18-month low of 54.1 from 55.1 in April.

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Elsewhere, U.K. consumer inflation climbed 2.4 percent year-on-year in April, slightly slower than the 2.5 percent increase seen in March, data from the Office for National Statistics revealed. The rate was expected to remain at 2.5 percent.

While the U.K.?s FTSE 100 Index has fallen by 0.6 percent, the French CAC 40 Index is down by 1.4 percent and the German DAX Index is down by 1.7 percent.

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Julius Baer Group shares have fallen after the Swiss bank said its assets under management rose 3 percent in the first four months of 2018.

Energy stocks have also come under pressure as oil prices have fallen on speculation that OPEC may raise oil output as soon as June.

Rio Tinto shares have also moved to the downside after the mining giant said it is in talks about the potential sale of its stake in Indonesia’s Grasberg mine for A$3.5 billion.

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Meanwhile, British retailer Marks & Spencer Group has rallied after announcing it would close 100 stores by 2022.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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