LONDON: European shares retreated on Tuesday after strong gains in the previous session, with a reversal in commodities prices and disappointing updates from companies such as global diversified miner BHP Billiton putting pressure on the market.
The pan-European FTSEurofirst 300 index fell 0.8 percent in early trading after closing 1.7 percent higher in the previous session.
BHP Billiton fell 3 percent after slashing its interim dividend by 75 percent, abandoning a long-held policy of steady or higher payouts, and reporting a net loss of $5.67 billion for the six months to Dec. 31, its first loss in more than 16 years.
By contrast, France's Thales rose 5 percent as the company raised its dividend after posting higher-than-expected core profit and record orders in 2015, kicking into a higher gear after years of lacklustre growth.
The STOXX Europe 600 Oil and Gas index fell 0.9 percent, as crude oil prices fell more than 1 percent amid worries that rising Iranian output would deepen a global crude oversupply, offsetting expectations of a drop in US production.
The European mining index also fell by around 2 percent, hit by the fall at BHP Billiton and by weaker metals prices.
Comments
Comments are closed for this article.