Muristek
The German share price index, DAX board, is seen at the stock exchange in Frankfurt January 10, 2018. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
BERLIN, March 31 — European shares slipped in choppy trade today, widening a quarterly loss that would be the first in two years, as oil stocks slid on news that the United States was considering tapping into its oil reserves.
The pan-European stock index was down 0.1 per cent, as of 0941 GMT, after early gains that were fuelled by some defensive sectors such as utilities.
Oil and gas stocks fell 0.8 per cent as the United States weighed releasing a record amount of up to 180 million barrels from its strategic petroleum reserve to control prices that have surged in the wake of a conflict between Russia and Ukraine. R
TotalEnergies SE, BP Plc and Shell Plc fell between 0.8 per cent and 1.5 per cent.
“Average oil price is going to stay higher than anticipated at the start of year and will be reflected in inflation and that means that the central banks will have no other choice than hiking rates,” said Charles-Henry Monchau, chief investment officer at Syz Bank.
Data showed French inflation rose more than expected to hit a record high in March. Read full story
Meanwhile, Germany triggered an emergency plan under which Europe’s largest economy could ration power if Russia’s rouble payment demand for gas were to disrupt or halt supplies.
But Germany would continue to pay in euros as per assurances from Russian President Vladimir Putin, a government spokesperson said.
The STOXX 600 is down about 5.8 per cent for the January-March period after seven straight quarters of gains, as investors remain circumspect in the face of the Ukraine crisis and its impact on inflation and economic growth.
For the month, however, the index was on course to log its first monthly gain of 2022. Analysts have attributed this partly to equities appearing to be a better hedge to inflation than bonds.
“European earnings are seeing positive revisions versus the US and that is a tailwind. Europe is very much cyclically driven and as cyclicals are up, the equity index benefits,” Monchau said.
“There is some institutional money that may continue to be invested in risk assets.”
Among individual stocks, Sweden’s H&M fell 8.4 per cent after reporting a smaller profit than expected for the December-February period. Read full story
Brewin Dolphin BRW.L soared 60.4 per cent after Royal Bank of Canada made a 1.6 billion pound (US$2.1 billion) all-cash offer for the British wealth manager. — Reuters