By Bansari Mayur Kamdar
(Reuters) – European shares edged lower on Friday as crude prices continued to weigh on energy stocks, with all eyes on U.S. jobs data expected later in the day.
The pan-European index STOXX 600 was down 0.1% amid worries that the U.S. Federal Reserve’s aggressive pace of rate hikes would slow economic growth in the world’s largest economy.
The oil and gas sector fell 1% as crude prices languished near their lowest since the start of the conflict in Ukraine, with markets juggling concerns of supply shortage and slower demand. [O/R]
(Graphic: G10 interest rates: https://graphics.reuters.com/BRITAIN-BOE/akpezkzkrvr/chart_eikon.jpg)
Company results were mixed on Friday, with Deutsche Post up 6.4% on posting double-digit growth in revenue and earnings.
London Stock Exchange Group gained 2.6% on saying costs and savings targets for integrating its $27 billion acquisition of data company Refinitiv remain unchanged and it was launching a 750 million pound ($910.65 million) share buy-back.
German insurer Allianz fell 2.1% on reporting a worse-than-expected 23% fall in second-quarter net profit.
“It is quite understandable that investors, especially institutional, are rethinking their portfolios and fundamentals are likely to drive investment decisions over the near-to-medium term,” Kunal Sawhney, chief executive officer at Kalkine Group, said.
Credit Suisse fell 1.1% in early trading after Fitch Ratings downgraded the bank and a local media report said it was among the lenders at big risk from Mexican finance company Credito Real’s bankruptcy.
The embattled Swiss bank’s shares are down 41% so far this year, compared with a 15.5% decline in the European banking index.
Miners rose 0.6% as copper and most other base metals continued to find support from a weaker U.S. dollar. [MET/L]
(Graphic: Credit Suisse down 41% YTD: https://fingfx.thomsonreuters.com/gfx/mkt/mypmneoydvr/CSbanks.PNG)
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta)
Source: One America News Network
