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European stocks open lower, drop in oil prices weighs; DAX down 0.24%

Published 05/26/2017, 03:36 AM
© Reuters.  Frankfurt Stock Exchange

Investing.com - European stocks were lower on Friday, as oil prices continued to drop and as investors focused on G-7 talks due to begin later in the day.

During European morning trade, the EURO STOXX 50 slipped 0.19%, France’s CAC 40 declined 0.32%, while Germany’s DAX 30 fell 0.24%.

Group of 7 leaders were set to meet in Sicily on Friday to discuss matters including trade and climate change.

Oil prices continued to decline following OPEC’s decision to extend production cuts by nine months.

The move disappointed some traders who had hoped for longer or deeper cuts.

Energy-related stocks were broadly lower, as French oil and gas major Total SA (PA:TOTF) tumbled 1.30% and Italy’s ENI (MI:ENI) lost 1.71%, while Norwegian rival Statoil ASA (OL:STL) saw shares plummet 2.30%.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.68% and 1.10%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) retreated 0.75% and 1.10%.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) lost 0.83% and 1.23% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) dropped 0.67% and 0.61%.

On the upside, Merck KGaA (DE:MRCG) added 0.08% after it and UnitedHealth Group (NYSE:UNH)'s Optum unit signed a multiyear agreement to develop a better way to reimburse drugmakers based on how well their drugs improve a patient's health.

Safran (PA:SAF) shares were up 0.48% after the company earlier in the week cut its proposed offer price for aircraft equipment group Zodiac Aerospace after the latter issued a series of profit warnings.

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In London, FTSE 100 dipped 0.01%, as U.K. lenders tracked their European counterparts sharply lower.

Shares in Lloyds Banking (LON:LLOY) declined 1.41% and the Royal Bank of Scotland (LON:RBS) tumbled 1.61%, hile Barclays (LON:BARC) plummeted 1.71%. HSBC Holdings (LON:HSBA) overperformed however, as shares rose 0.28%.

Intertek Group (LON:ITRK) was also on the downside, as shares retreated 1.74% even as the product testing group said it is on track to deliver 2017 targets after it reported solid revenue growth in the first four months of the year.

Meanwhile, mining stocks were broadly higher on the commodity-heavy index. Glencore (LON:GLEN) climbed 0.43% and Fresnillo (LON:FRES) advanced 0.89%, while Rio Tinto (LON:RIO) jumped 1.03% and Randgold Resources (LON:RRS) rallied 1.41%.

Informa Plc (LON:INF) was one of the top performers on the index, with shares up 4.23% after the publisher and business events group’s CEO said he remains confident the company will meet its full-year expectations.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.04% loss, S&P 500 futures showed a 0.03% downtick, while the Nasdaq 100 futures indicated a 0.05% gain.

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