LONDON: European stock markets plunged further Tuesday as BP's vast annual earnings loss rattled an energy sector already battered by sliding oil prices.
London equities shed 1.6 percent, with British energy giant BP tumbling almost nine percent after posting the company's biggest loss in at least 20 years on the oil-price collapse.
BP suffered a loss after tax of $6.48 billion (5.97 billion euros) last year, compared with a net profit of $3.78 billion in 2014, and announced another 3,000 job cuts.
The news sent BP shares tanking 8.6 percent to 335.40 pence. Anglo-Dutch rival Royal Dutch Shell saw its 'B' share price shed 4.1 percent to 1,438 pence.
In Paris, French oil titan Total lost 4.1 percent in value to stand at 38.35 euros.
"We are back to the same old story today with materials and energy providing a drag on the FTSE as BP delivered what was frankly a terrible set of results," said analyst Brenda Kelly at traders London Capital Group.
"Adding insult to injury, oil prices are 1.50 percent lower, with downside momentum and basic economic fundamentals (of supply and demand) all conspiring to ensure that it will revisit $30 (a barrel)... in the near term."
- Feel-good factor wears off -
Many markets have run out of steam following Friday's pre-weekend surge, when the Bank of Japan unexpectedly slashed some interest rates to negative territory to boost lending, stimulate growth and lift inflation.
The president of the European Central Bank, Mario Draghi, said Monday that it was prepared to play its part in helping the economic recovery, hinting at more eurozone stimulus.
"The feel-good factor created by the Bank of Japan's move to take interest rates into negative territory appears to be wearing off, even though the ECB's Mario Draghi is also hinting at more stimulus," said Russ Mould, investment director at trading firm AJ Bell.
"Although it is clear that central banks will not rest in their attempts to stoke economic growth and fuel inflation, markets may be losing a little faith in their ability to do so," he told AFP.
Sentiment was hit also by weak US and Chinese factory data -- which stoked fears over the world's first and second biggest economies -- although Shanghai rallied after the People's Bank of China pumped billions more dollars into financial markets before the week-long Lunar New Year break.
US manufacturing activity contracted for the fourth straight month in January, data showed, while consumer spending flattened in December. The news offered support to the euro.
The figures, published before this Friday's key US non-farm payrolls data, weighed on sentiment after a key gauge of Chinese factory activity also hit a three-year low.
"This week's manufacturing PMI in the US was the latest in a series of disappointing pieces of American data," added Mould.
"As a result markets are becoming nervous ahead of Friday's US non-farm payrolls figure."
London - FTSE 100: DOWN 1.6 percent at 5,962.2 points
Frankfurt - DAX 30: DOWN 1.0 percent at 9,662.4
Paris - CAC 40: DOWN 1.7 percent at 4,318.5
EURO STOXX 50: DOWN 1.3 percent at 2,980.6
Tokyo - Nikkei 225: DOWN 0.6 percent at 17,750.68 (close)
Sydney - S&P/ASX 200: DOWN 1.0 percent at 4,993.30 (close)
Hong Kong - Hang Seng: DOWN 0.8 percent at 19,446.84 (close)
Shanghai - Composite: UP 2.3 percent at 2,749.27 (close)
New York - Dow: DOWN 0.10 percent at 16,449.18 (close)
Euro/dollar: UP at $1.0911 from $1.0893 Monday
Euro/yen: UP at 131.77 yen from 131.76 yen
Dollar/yen: DOWN at 120.75 yen from 120.96 yen
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