European shares bounce; weaker oil hits energy sector

jueves 13 de noviembre de 2014 08:28 GYT
 

* FTSEurofirst 300 up 0.4 pct, Euro STOXX 50 up 0.5 pct

* Brent drops through 'pain threshold' of $80 a barrel

* Earnings season strong but lack of revenue growth nags

By Blaise Robinson

PARIS, Nov 13 (Reuters) - European stocks rose on Thursday, reversing a small portion of the previous day's slide, with some reassuring corporate results offsetting weak economic data from China.

Shares in energy companies slipped, however, as Brent crude oil fell below $80 a barrel and hit a four-year low, with Seadrill, Saipem and TGS down 0.5 percent to 1.9 percent.

"$80 is the pain threshold," said Alexandre Baradez, chief market analyst at IG France.

"Below that, a lot of the oil majors' projects are not profitable and a lot of oil-producing countries start to have serious budget issues. It's also a problem for the euro zone because it drags down inflation."

The prospect of belt-tightening by energy majors as oil prices plunge has hurt the oil services sector, with some shares plummeting between 30 percent and 65 percent in recent months.   Continuación...