Weaker oil stocks hit European equities, UBS drops

martes 10 de febrero de 2015 05:44 GYT
 

* Pan-European FTSEurofirst 300 index down 0.2 pct

* UBS drops, warns over the impact of stronger franc

* Oil shares fall the most, track weaker oil prices

By Atul Prakash

LONDON, Feb 10 (Reuters) - European shares fell for a second day on Tuesday, with energy stocks hurt most after crude prices slid again on concerns about oil demand in China.

Swiss bank UBS dropped 3.2 percent after it warned on the impact of the surging Swiss franc and negative interest rates in Switzerland and the euro zone. UBS's fall came despite the bank promising its biggest payout to shareholders since the financial crisis and announcing a "solid" start to 2015.

Among sectors, the STOXX Europe 600 Oil and Gas index slipped 1.5 percent after Brent fell below $58 a barrel as Chinese inflation data raised concerns about oil demand in the world's second-largest economy.

"It's difficult to see a big recovery in oil prices in the near term as the upside is limited in the current environment because of the huge supply glut," Peter Dixon, equity strategist at Commerzbank, said, adding oil shares would continue to mirror moves in energy prices.

Oil majors BP, BG Group and Royal Dutch Shell fell 1.7 to 2.3 percent, putting pressure on the broader market. The pan-European FTSEurofirst 300 index was down 0.2 percent at 1,476.99 points at 0923 GMT.   Continuación...