Share price falls for energy firms capped gains for top European stocks today, after OPEC resisted pressure to cut supply in the face of a global slump in the oil price.
However, shares were able to edge higher, led up by the German DAX, which extended its recent sharp rally on the back of encouraging data and expectations of further stimulus measures from the European Central Bank.
Oil-related stocks were under pressure, making up the 12 biggest fallers on the index, as oil tumbled $6 and touched a four-year low following the Organisation of the Petroleum Exporting Countries’ decision not to cut supply.
The STOXX Europe 600 Oil & Gas Index extended losses to trade down 4 percent following the meeting.
The energy services sector bore the brunt of the falls, while airlines rose to the top of the index as the falling oil price cut costs.
Seadrill fell 7 percent to a fresh five-year low. It has lost a quarter of its value in the last two sessions, extending a slump yesterday after suspending its dividend in the face of tough market conditions.
Swiss-listed shares of Transocean fell 7.9 percent to an all-time low.
The FTSEurofirst 300 index of top European shares closed up 0.2 percent at 1,392.40 points in quiet trade, with the United States shut for Thanksgiving holiday.
The DAX was up 0.6 percent, rising for its 11th straight session, bringing the index within 100 points of breaking its all-time high set in June.
Germany’s unemployment rate touched a record low in November, while at the same time weak inflation data raised helped expectations that the European Central Bank would buy bonds in response.
Meanwhile, Japanese stocks closed down today, as selling of Nikkei futures in the afternoon widened earlier losses driven by weak US data and a stronger yen.
The Nikkei benchmark shed 0.8 percent to close at 17,248.50.
Many investors stayed on the sidelines ahead of the Thanksgiving holiday in the US, and the trade volume was the lowest since November 10.
Market participants said hedge funds and securities firms took temporary short positions on Nikkei futures post-lunch in response to a stronger yen.
Major export shares suffered with the dollar retreating to 117.24 against the yen. Canon Inc shed 0.5 percent and Nissan Motor Co fell 1.6 percent. Yakult Honsha Co touched a four-week low and lost 6.1 percent for the day on a media report saying France’s Danone SA is considering selling its 20 percent stake in the company.
The broader Topix fell 1.0 percent to 1,391.90, while the JPX-Nikkei Index 400 shed 1.1 percent to 12,680.52.
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