ROME: European stocks fell Monday, with energy shares dragged down as oil prices slid and as investors await an update on manufacturing activity in the eurozone.
The Stoxx Europe 600 SXXP, -0.56% dropped 0.6% to 379.55, led by a pullback in the oil and gas sector SXEP, -1.46% as oil prices CLF6, -2.98% fell 3%. In that group, British energy producer Tullow Oil PLC TLW, -0.89% was down 3.2% and Sweden’s Lundin Petroleum AB LUPE, -1.91% gave up 2.1%. Oil equipment and services provider Seadrill Ltd. SDRL, -1.78% lost 2.3%, and Amec Foster Wheeler PLC AMFW, -3.44% was pulled 2.2% lower.
Prices were metals down, with copper off 2.4%, crunched by strengthening in the dollar DXY, +0.14% against its rivals. The euro EURUSD, -0.1785% has been under pressure as the European Central Bank signals that it may ramp up its efforts to bolster inflation levels in the eurozone.
“Markets are being pulled by big forces in different directions, with some investors seeing the expected extension to monetary easing from the ECB next week to provide further impetus for equity markets,” said Simon Smith, chief economist at FXPro, in a note.
Meanwhile, “the prospect of tightening from the Fed next month at a time of slowing global growth, as evidenced by weaker commodities, is a reason to be more bearish,” he said.
Investors will get a look at the preliminary, or flash, November reading of Markit’s purchasing managers’ index for the eurozone, due at 9 a.m. London time, or 4 a.m. Eastern Time.
The euro EURUSD, -0.1785% was down 0.1% at 1.0634 against the greenback ahead of the data.
On national indexes, France’s CAC 40 PX1, -0.79% gave up 0.6% to 4,882.83. Germany’s DAX 30 DAX, -0.38% lost 0.4% to 11,078.65 and the U.K.’s FTSE 100 UKX, -0.68% fell 0.8% to 6,285.60.
