European Stocks Lower on Retreating Oil Prices

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The EURO STOXX 50 declined 0.69%, France’s CAC 40 retreated 0.55%, and Germany’s DAX 30 dropped 0.89% on Tuesday, as oil prices fell again after a brief recovery on Monday and as investors anticipated the release of German data due later today.

Oil prices gave up Monday’s gains on Tuesday as anxiety over increasing Iranian oil production resurfaced despite a freeze agreement between major producers.

Crude-related stocks in Europe were broadly lower with French oil and gas major Total SA (PA:TOTF) losing 1.26% and Italian rival ENI (MI:ENI) dropping 1.38%. Norway’s Statoil wasn’t able to buck the downward trend and likewise fell 1.37%.

Financial stocks also saw losses with BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) falling 1.51% and 1.57% respectively. Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) shares were also down, dropping 2.15% and 1.18%.

Swimming against the tide were Danone SA (PA:DANO) and Thales (PA:TCFP).  Shares gained 2.25% and 7% respectively after raising forecasts.

In the United Kingdom, commodity-tied FTSE 100 fell 0.82%, after being dragged down by steep losses in the mining sector.

Shares in Anglo American (L:AAL) tumbled 2.68% and Rio Tinto (L:RIO) fell 1.78%, while Glencore (L:GLEN) and Bhp Billiton (L:BLT) plummeted 3.51% and 3.30% respectively.

Banking stocks were also generally lower with HSBC Holdings (L:HSBA) declining 0.20% and Lloyds Banking (L:LLOY) slipping 0.87%. Barclays (L:BARC) likewise plunged 1.82%, while the Royal Bank of Scotland (L:RBS) fell 1.02%.

Conversely, Persimmon (L:PSN) was one of  better performers on the index, with shares soaring 5.02% after the the company posted a 34% rise in pre-tax profit in 2015.

Also in London, investors continued to discuss the possibility of a British exit from the European Union, with a referendum happening in less than 4 months.

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