Energy shares weigh on Hong Kong index as oil price outlook dims

Hong Kong shares ended fractionally lower on Monday led by a tumble in energy heavyweights as investors worried about persistent weakness in oil prices.

The Hang Seng index fell 0.2 percent, to 22,203.22, while the China Enterprises Index lost 0.4 percent, to 9,798.19 points.

All main sectors were up, expect for energy shares, which tumbled amid concerns that oil prices – already at almost seven-year lows – would decline further.

Oil giants CNOOC, PetroChina and Sinopec all fell sharply.

Hong Kong-traded shares of CITIC Securities also sagged, after China’s top brokerage said on Sunday that it was not able to contact two of its top executives.

 

Source: Reuters

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European Stocks Fall After ECB Report Dims Prospects of More QE

 

European stocks declined after a report showing an improvement in the region’s lending conditions lowered the prospects for additional monetary stimulus.

 

After hovering near a two-month high in the first hour of trading, equities slid as a European Central Bank survey showed credit standards on loans to companies eased for the sixth straight quarter. Banks fell after the ECB said its quantitative-easing program will drag on profitability at those companies in the next six months. The report gives policy makers less cause to act when they meet this week, said Mirabaud Securities’ John Plassard.

 

The Stoxx Europe 600 Index dropped 0.4 percent to 362.67 at the close of trading. Spain’s Banco Popular Espanol SA and Banco de Sabadell SA led a drop among lenders, slipping 3.3 percent or more. Europe’s equity benchmark pared a decline of as much as 0.9 percent after commodity producers trimmed losses, tracking gains in their U.S. counterparts.

 

Source: Bloomberg

 


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