European Shares Decline as Oil Stocks Continue Their Plunge

LONDON ( The Deal) -- Oil stocks continued their plunge on Friday, dragging down markets across Europe and in oil producing nations and natural resources exporters like Russia, Australia and Nigeria.

On the other hand oil importers like India, Turkey and Japan got a big boost from Thursday's decision by OPEC not to cut output to boost prices. With the price of Brent crude now languishing at around $72 a barrel, neither Europe nor Japan are finding it easy to counter deflationary pressures, and it's far from clear that cheaper energy is actually stimulating economies as might have been expected.

The biggest fallers in London were gas and oil producer BG Group (BRGYY) down 8.6% at 901.8 pence, oil and gas industry pumps and turbines maker Weir Group (WEIGY) , down 6.48% at 1,833 pence, and the oil companies Tullow Oil (TUWOY) , Royal Dutch Shell (RDS.A) , and BP (BP) , down 5.36%, 3.66% and 3.5% respectively.

It was a similar picture in Paris, where Total (TOT) was down 4%, and in Oslo, where state-controlled oil company Statoil (STO) was down 9.51%.

But it wasn't all bad news. British cellphone network operator Vodafone (VOD)  rose 2.07% on reports that the Indian government will not appeal against a High Court decision in Vodafone's favor regarding a disputed tax bill for transfer pricing.

Theme parks and entertainments operator Merlin Entertainments  (MIINF) was up 1.39% after announcing plans to build a new Legoland theme park in Korea, at a cost of about $270 million. It said Korea is one of the largest markets for Lego toys. Merlin will pay about a third of the cost and the rest will be met by local partners.

In London, the FTSE 100 was down 0.67% at 6,678.85, while in Paris, the CAC 40 was down 0.53% at 4,359.04. In Frankfurt, the DAX was down 0.37% at 9,937.85. Russia's RTS Index was down 2.75% at 978.7. T

okyo's Nikkei 225 rose 1.23% to 17,459.85, and Hong Kong's Hang Seng fell 0.07% to 23,987.45.

 

 

 

 

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