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HomeMarketsCommodity stocks weigh on European markets as oil and metal prices slip

Commodity stocks weigh on European markets as oil and metal prices slip

European stocks flirted with giving up some of the gains made earlier in the week, as lower commodity prices weighed on indexes, but markets came out of Tuesday with broad gains.

The pan-European Stoxx 600
XX:SXXP
rose 0.3%, while London’s FTSE 100
UK:UKX
lifted 0.64%. Thehe CAC 40
FR:PX1
in Paris was o.35% higher and and Frankfurt’s DAX
DX:DAX
rose 0.27%. Stocks had a standout day on Monday, with the Stoxx 600 rising 1.8% amid a wider global rally.

The Dow
DJIA
was down more than 120 points after it surged more than 600 points on Monday to close at 31,535.

European stocks opened lower to chase down Asian equities, which slid following a warning from China’s top banking regulator that stocks on Wall Street and elsewhere in the world look like bubbles that will eventually correct.

Lower commodity prices contributed to the weight on indexes, but were outbalanced as prices steadied and as a wave of positive earnings reports added buoyancy to markets. The recent rise in bond yields, and concerns over central banking policies as the global economy turns to recovery from the COVID-19 pandemic, remained macro concerns.

Read more: China’s top banking regulator warns of asset bubbles on Wall Street and elsewhere

European markets “are trading more cautiously this morning, slipping back initially in early trade, before edging into positive territory, as investors mull whether a change in tone from the Federal Reserve is forthcoming with respect to their recent ambivalence on the recent sharp rise in U.S. bond yields,” said Michael Hewson, an analyst at CMC Markets.

“The main drags in early trade are in basic resources with lower oil prices pulling on the likes of BP and Royal Dutch Shell,” Hewson added.

Oil prices were lower, but benchmarks Brent crude
UK:BRENT CRUDE
and West Texas Intermediate
UK:WTI CRUDE
both ended the European day around flat. Major European-listed oil stocks made some of the biggest moves on Tuesday, with shares in BP
UK:BP,
Royal Dutch Shell
UK:RDSA,
Total
IT:TOT,
and Eni
IT:ENI
slipping before paring losses or moving into the green.

Gold
GOLD
and silver
SILVER
are also in the spotlight, with silver down near 2% before settling 0.4% lower. Shares in metals and mining giants, which weigh heavily on the FTSE 100 index, fell in early trading. Polymetal International
UK:POLY,
Fresnillo
UK:FRES,
Glencore
UK:GLEN,
Antofagasta
UK:ANTO,
and Anglo American
UK:AAL
were among the stocks making the biggest moves.

British house builder Taylor Wimpey
UK:TW
was a standout riser in London trading, with shares up more than 3% following full-year results, before ending closer to flat. The group will resume…

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