European shares knocked as oil slide hits earnings

jueves 29 de enero de 2015 11:27 GYT
 

* FTSEurofirst 300 down 0.2 pct after bullish Fed

* Greek stocks rebound, banks edge up from record lows

* Vallourec warns of impairment, shares fall

By Alistair Smout and Blaise Robinson

LONDON/PARIS, Jan 29 (Reuters) - Weak corporate updates pegged back European shares on Thursday, as the effects of a rout in oil prices knocked back heavyweight energy firms.

Some traders said the Federal Reserve's statement on Wednesday, signalling U.S. rate rises were still likely this year, was also crimping appetite for shares, although Greek banks rebounded from record lows hit earlier in the week.

Royal Dutch Shell dropped 4.4 percent after the oil major said it will cut spending by $15 billion over the next three years.

Oil and gas stocks fell 2.9 percent, and are down over 20 percent since June, with the price of a barrel of Brent crude falling nearly 60 percent in the same period.

"The fall in oil price has forced a very aggressive cutback to exploration and production, and that fall in capex is a GDP (gross domestic product) negative," Jeremy Batstone-Carr, market analyst at Charles Stanley, said.   Continuación...