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Madrid - European stocks fell as low trading persisted in the holiday-shortened week.
The Stoxx Europe 600 Index slipped 0.3% at 12:52, with energy companies and miners leading losses as commodities retreated after data showed Chinese industrial company profits fell. With the UK market closed for the Boxing Day holiday, the volume of Stoxx 600 shares changing hands was more than two-thirds below the 30-day average.
“Oil and gas companies are under pressure because of the Chinese statistic over the weekend,” said John Plassard, a senior equity-sales trader at Mirabaud Securities LLP in Geneva.
“Essential drivers for the European market next year will be expansive monetary policy, the weakness of the euro, a sustainable valuation of European companies, a strong domestic demand and nice profit growth.”
European equities advanced for two weeks amid a rebound in energy and commodity producers. Still, the Stoxx 600 was down 5% for the month at the end of last week, heading for its worst December since 2002. An addition in European Central Bank stimulus that fell short of expectations contributed to the negative sentiment among stock investors, just as oil and commodities deepened their rout.
The Stoxx 600 has lost most of its annual advance as concerns over global growth took over just as the Federal Reserve increased its interest rates for the first time in almost a decade. After surging as much as 21% to a record in April, the Stoxx 600 slid 12% through Thursday, taking its annual advance to 6.9%. Markets were closed on Friday for the Christmas holiday.
Banca Monte dei Paschi di Siena SpA rose 1.8% after signing an agreement to dispose of a non-performing loan portfolio. PostNL NV fell 2.9% after jumping 13% on Thursday on takeover speculation.
