EUROPE MARKETS: European Stocks Down For Third Straight Day As Commodity Shares Pull Back

By Carla Mozee, MarketWatch

Statoil, Tullow among the day's notable losers

European stocks struggled Wednesday, with investors expressing disappointment over a new round of financial updates while oil prices were under pressure.

The Stoxx Europe 600 gave up 0.6% to 340.88 as only the defensive utilities sector notched a fractional gain. The benchmark was facing its third straight loss. On Tuesday, it fell 0.4%

The oil and gas sector was the worst performing as West Texas Intermediate crude futures slumped 1.5% and traded below $50 a barrel. Brent crude was down more than 1%, clinging just above $50 a barrel.

Oil's losses come as "fears mount that the proposed OPEC production cuts won't be implemented as planned and with expectations being that we will see a build in stocks when [U.S.] inventory data is released later in the session, downside pressures could continue to mount here," said Tony Cross, market analyst for TopTradr, in a note.

Among oil producers, Statoil ASA (STL.OS) was off 1.7%, Portugal's Galp Energia (GALP.LB) gave up 1.5% and Tullow Oil PLC (TLW.LN) shed 2.7%. Meanwhile, shares of Italian energy engineering services company Saipem SpA (SPM.MI) fell 6.5% .

Weekly oil supply data are due later Wednesday from the U.S. Energy Information Administration. Late Tuesday, figures from the American Petroleum Institute showed U.S. crude stockpiles jumped 4.8 million barrels (http://www.marketwatch.com/story/oil-futures-drop-as-sources-say-api-data-show-us-crude-supply-up-48-mln-barrels-2016-10-25) in the week ended Oct. 21, and analysts polled by S&P Global Platts had forecast an increase of 400,000 barrels in stockpiles.

Elsewhere in the commodities space, shares of Antofagasta PLC (ANTO.LN) fell 6.6% after the miner said it expects this year's copper output to be close to the lower end (http://www.marketwatch.com/story/antofagasta-copper-output-up-reaffirms-guidance-2016-10-26) of its forecast of 710,000-740,000 tons.

Other movers: Kering shares (KER.FR) leapt 7.7% after the luxury-goods maker said quarterly sales climbed 10% (http://www.marketwatch.com/story/kerings-sales-jump-helped-by-turnaround-at-gucci-2016-10-26), aided by a turnaround at Gucci, it's largest brand.

Novozymes A/S (NZYM-B.KO) plunged 12% after the Danish enzymes maker's third-quarter quarterly earnings came in below expectations and the company reduced its fiscal-year forecast.

Airbus Group SE (AIR.FR) shares rose 1.6%, pushing past the aircraft maker's report that its most closely watched earnings measure fell 21% (http://www.marketwatch.com/story/airbus-quarterly-profit-falls-sales-slip-2016-10-26).

Indexes: Germany's DAX 30 fell 1.1% to 10,637.28, and France's CAC 40 fell 0.9% to 4,498.26.

   The  U.K's FTSE 100  lost 1.1% to 6,944.41 and Italy's FTSE MIB   was down 0.5% to 17.139.23. 

The euro was changing hands at $1.0925, up from $1.0885 late Tuesday in New York.

(END) Dow Jones Newswires

October 26, 2016 05:45 ET (09:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.