European shares dip after weak China data; Tullow slumps

The broader oil & gas index shed 0.9pc, the most among the European sub-sectors. Attention turns to the UK
09 Dec, 2019
  • The broader oil & gas index shed 0.9pc, the most among the European sub-sectors.
  • Attention turns to the UK national election on Thursday to decide the fate of Brexit.
  • Tullow Oil shares hit a 19-year low after its Chief Executive Paul McDade also stepped down.

Tullow Oil shares hit a 19-year low after its Chief Executive Paul McDade also stepped down, as the firm continues to face issues at its main producing assets in Ghana.

The broader oil & gas index shed 0.9pc, the most among the European sub-sectors.

The pan-European STOXX 600 index was down 0.1pc, following a more than 1pc gain on Friday after a robust US jobs report.

The latest data out of China showed exports in November shrank for the fourth straight month, in a sign the world's second largest economy continues to reel from the impact of a prolonged trade war with the United States.

The data "draws attention to the importance of the trade negotiations for both China and market sentiment," said Stephen Innes, chief Asia market strategist at AxiTrader.

The world's top two economies have been engaged in discussions since October to strike an initial trade deal.

On Monday, Beijing reiterated its desire to reach an agreement as soon as possible.

Attention turns to the UK national election on Thursday to decide the fate of Brexit, with a recent opinion poll showing Prime Minister Boris Johnson's Conservative Party extending its lead over the Labour Party.

"People are waiting to see whether there will be a Conservative majority," said Michael Baker, analyst at ETX Capital in London. "But because of events of the last few years, no one is completely relying on those polls so that's why we're not seeing a big rally."

Meanwhile, French stocks were leading declines among their peers, as the country's finance minister said they were ready to go to the World Trade Organization to challenge US President Donald Trump's threat to put tariffs on champagne and other French goods in a row over a French tax on internet companies.

Among gainers, Britain's biggest retailer Tesco jumped 5pc, after the company it was reviewing its remaining Asian businesses, in Thailand and Malaysia, including examining a possible sale.

Osram shares jumped 14.3pc and was the top gainer in the benchmark index, as Austrian sensor maker AMS succeeded at its second attempt with a 4.6 billion euro bid for lighting group, gaining more than 55pc of the firm.

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