European stocks titled lower Tuesday, moving toward a third day of losses, with only the energy sector responding to slight recovery in depressed oil prices.
The Stoxx Europe 600 SXXP, +0.13% flipped lower by 0.4% to 355.91 as German, French and Spanish shares lost grip of gains they started with early in the session.
Oil: The European oil and gas group SXEP, +1.06% was the only sector moving higher as oil prices rose after dropping on Monday. Both Brent crude LCOG6, +0.08% and West Texas Intermediate CLG6, +0.39% were up nearly 1%, trading above $36 a barrel. Brent on Monday settled at its lowest since July 2004.
“The continued slide in global oil prices remains comfortably the biggest story for markets at the start of this holiday-shortened week,” said Ian Williams, economist Peel Hunt, in a note.“Russia and the OPEC nations are pumping at record rates, while supplies from Iran and Libya are set to re-enter the market.”
Among oil stocks, Tullow Oil PLC TLW, +1.28% rose 2.2%, and Italy’s ENI SpA ENI, +1.12% gained 1.1%. Energy services firm John Wood Group PLC WG., +1.19% picked up 1%.
Indexes: But the gain in oil shares couldn’t keep the U.K’s FTSE 100 UKX, +0.61% from paring its advance to 1 point at 6,036.20. In Frankfurt, the DAX 30 DAX, -0.05% turned down 0.8% to 10.413.07.
France’s CAC 40 PX1, +0.03% meanwhile, turned lower by 0.6% at 4,535.60. There, Carrefour SA CA, -0.76% shares were off 0.6% after the French supermarket operator agreed to buy Romanian supermarket chain Billa Romania for an undisclosed amount.
Also on the CAC 40, Airbus Group SE AIR, -0.42% fell 0.4% after the company agreed to sell its commercial satellite communications business to French private equity firm Apax Partners. Terms of the deal weren’t disclosed.
Spain’s IBEX 35 IBEX, +0.49% pared its gain to 2 points at 9,366.20. The index on Monday slid 3.6% after half the country’s voters backed antiestablishment parties in Sunday’s general election. That resulted in Spain’s ruling Popular Party losing its parliamentary majority. Read: Why the Spanish election outcome matters for investors.
Spain’s Prime Minister Mariano Rajoy “is feeling optimistic that he can form a government despite the fact he is lacking majority. It is undoubtedly very optimistic when you do not have any solid plans which can establish a common ground on which a deal can be made,” wrote Naeem Aslam, chief market analyst at AvaTrade.
The euro EURUSD, +0.1099% was buying $1.0923, little changed from $1.0925 late Monday in New York.
