European equity rebound fizzles out as oil extends slide

lunes 12 de enero de 2015 11:44 GYT

* FTSEurofirst 300 down 0.1 as oil stocks plunge

* Lufthansa says profit to rise on lower oil prices

* Continental eyes sales growth pick-up

By Francesco Canepa

LONDON, Jan 12 (Reuters) - European shares gave away early gains to trade flat late on Monday, led by oil stocks as crude prices extended their slide to fresh 5-1/2 year lows.

The equity selloff, which started on Wall Street and quickly spread to Europe, mirrored a new plunge in the price of oil, with Brent crude setting a new low at $47.61/barrel as the U.S. trading day got underway.

Traders blamed a report by analysts at bank Goldman Sachs, who cut their three-month forecasts for Brent to $42 a barrel from $80.

"Goldman Sachs' report on oil has turned up in the hands of U.S. traders and here are the results," IG strategist Vincenzo Longo said.

The STOXX 600 Oil & Gas index was down 1.9 percent at 1527 GMT.   Continuación...