PARIS: European stocks wavered Tuesday, with commodity-related stocks weighed by persistent losses in prices for metals and energy.
The Stoxx Europe 600 SXXP, +0.11% edged up less than 1 point to 387.59 after switching between small gains and losses.
The oil and gas SXEP, -0.86% and basic resources SXPR, -1.16% sectors were the worst performing, with oil prices CLU5, -0.55% falling nearly 1% as global oversupply concerns. Oil prices are at their lowest levels in more than six years. Read more in Futures Movers.
Shares of energy producer Tullow Oil PLC TLW, -3.96% fell 1.8%, trading near the bottom of the Stoxx 600.
Meanwhile, copper prices HGU5, -1.53% fell roughly 1.5% to trade at more than six-year lows on worries about demand from China. There have been concerns that China’s recent devaluation of the yuan will slow down the country’s import of copper. See more in Metals Stocks.
Stock in copper producer Antofagasta PLC ANTO, -2.96% gave up 2%, also trading near the bottom of the Stoxx 600.
As European trading opened, Chinese stocks sank, with the Shanghai Composite SHCOMP, -6.15% down 6.2%.
“Expectations for further stimulus have been stymied following [the] release of stronger housing market data and the fact that the [People’s Bank of China] injected cash into the financial system, hurting odds of an imminent cut to lenders’ reserve requirements,” said Peter Ward, senior sales trader at London Capital Group, in a note.
