After a day of fluctuations, European stocks finally closed at their lowest levels since September, extending losses after their worst weekly plunge in more than four years.
The Stoxx Europe 600 Index erased its gain in the final hour of trading, falling 0.3 percent at the close as commodity producers reversed advances. Germany’s DAX Index, which heavily relies on exporters and was among the worst developed markets last week, slipped 0.3 percent, after earlier climbing as much as 1.3 percent.
European equities tumbled last week as concern took over that China’s slowdown will hurt the global recovery, even with the European Central Bank’s stimulus supporting the region. After its worst-ever start to a year ever, the Stoxx 600 went on to fall three more days, ending with a 6.7 percent weekly plunge — a bigger slump than the Standard & Poor’s 500 Index and the MSCI Asia Pacific Index. With China being Germany’s third-biggest trade partner, the DAX tumbled 8.3 percent.
A rally in European stocks ran out of steam after data showing an increase in U.S. crude stockpiles trimmed an intraday advance in oil producers.
While a surge in energy shares propped up the Stoxx Europe 600 Index for most of the day, the broader benchmark gave up almost all of its gains in the final hour of trading as advances in Total SA and Royal Dutch Shell Plc diminished. The Stoxx 600 rose 0.1 percent at the close of trading, after climbing as much as 1.2 percent.
Health-care shares fell the most among Stoxx 600 groups today. Roche Holding AG and Novartis AG, among stocks with the biggest weightings on the benchmark gauge, lost 2.4 percent or more.
The Stoxx 600 jumped 4.1 percent in the past three sessions as investors speculated the Federal Reserve won’t rush to raise rates and Glencore Plc led a rally in miners. The gauge had tumbled as much as 18 percent from an April record through Sept. 29 amid worries about global growth and the Fed’s thinking.
Source : Bloomberg