European equities slipped for the fourth consecutive day as the FTSEurofirst index fell more than 1 percent on Thursday. Weaker commodities prices and hawkish comments from St. Louis Fed President James Bullard contributed to the decline in the market.
The STOXX Europe 600 Basic Resources index was the top sectoral decliner, falling 3.4 percent due to a firmer dollar making metals costlier for holders of other currencies. This resulted in a drop in prices of major industrial metals. Shares in mining companies such as Anglo American, Glencore, Rio Tinto, and Fresnillo fell between 3.9 to 6.2 percent.
The STOXX Europe 600 Oil and Gas index also declined 1.8 percent, with shares of Royal Dutch Shell, Total, and BP falling between 1.6 to 2.1 percent. Oil prices were affected by rising U.S. crude inventories, adding to global supply glut concerns.
Some companies saw a slump in their stock prices after cautioning on their outlook. British clothing retailer Next saw a 9 percent decrease after posting a 5 percent rise in annual profit but warning of a tough economic environment in 2016. Precision engineering company Renishaw fell more than 11 percent after cutting its full-year revenue and earnings forecasts.
Italian banks Banco Popolare and Banca Popolare di Milano were volatile after agreeing to merge to create the country’s third-largest bank. Banco Popolare shares were suspended from trading after a 5.9 percent rise, while Banca Popolare di Milano opened more than 4 percent higher.
Overall, the European market is heading into the Easter holiday weekend on a cautious note, with thin trading volumes expected ahead of the break. Stocks in Denmark and Norway were already closed, while Sweden had a half-day of trading. The FTSEurofirst 300 index is down 1.7 percent for the week, heading for a second consecutive week of losses.
