ROME: Sharp drops Thursday in commodity stocks and the aerospace group—after Rolls-Royce Holdings PLC’s profit warning—helped European stocks tumble by the most in six weeks.
The Stoxx Europe 600 SXXP, -1.62% fell 1.6% to 372.56. That represented the largest percentage loss since Sept. 28, and the lowest close since Oct. 27, FactSet data showed.
All sectors ended in the red, with the oil-and-gas SXEP, -3.09% and basic-materials SXPP, -4.20% logging the biggest declines.
Headlining the rout in commodities were gold prices GCZ5, +0.18% which traded at their lowest level in about five years and crude-oil CLZ5, -0.48% which fell by more than 2%. The slump in commodity prices reflected, in part, concerns the U.S. Federal Reserve will begin lifting interest rates for the first time in nearly a decade when they meet on Dec. 15 and 16.
Among oil and gas producers, Statoil ASA STL, -3.92% fell 3.9% and BP PLC BP., -2.82% BP, -2.59% gave up 2.8%. Spain’s Repsol SA REP, -7.27% sank 7.3% as the Spanish oil producer swung to a third-quarter net loss, with lower oil prices hurting its oil-pumping and drilling division.
In the metals space, Anglo American PLC AAL, -8.70% tumbled 8.7% and Rio Tinto PLC RIO, -2.99% RIO, -2.75% ended 3% lower.
Movers: The worst performance on the Stoxx 600 came from Rolls-Royce RR., -19.57% Shares plunged 19% after the aircraft-engine maker said it may cut its dividend, as it downgraded its earnings outlook for this year and next. The shares marked the worst one-day slide since August 2000, according to FactSet data.
Other shares in the aerospace group struggled, with Dassault Aviation SA AM, -3.00% ending down 3%, and MTU Aero Engines AG MTX, -5.33% falling 5%. Airbus Group SE AIR, -3.74% lost 3.7% and Meggitt PLC MGGT, -3.16% gave up 3.2%.
The losses for Rolls-Royce and Meggitt contributed a 1.9% drop in the U.K.’s FTSE 100 UKX, -1.88% In Paris, the CAC 40 PX1, -1.94% closed down 1.9% at 4,856.65.
Germany’s DAX 30 DAX, -1.15% moved 1.2% lower to 10,782.63. On the DAX, RWE AG RWE, -10.45% slid 9.6% as the German electric-utility company said its earnings were hampered by low prices and warned it may barely achieve a key profitability target.
But Siemens AG SIE, +2.91% shares rose 1.9%. The German industrial giant reported a worse-than-expected 33% drop in fourth-quarter net profit, but forecast sales and earnings growth in the quarters ahead as it plans to return more cash to shareholders.
