Weaker commodities shares drag down European equities

By Reuters / December 06, 2016 / in.investing.com / Article Link

LONDON, Dec 6 (Reuters) - European shares edged lower in early trading on Tuesday, with commodities-related stocks coming under pressure following a drop in prices of crude oil and industrial metals.

The pan-European STOXX Europe index .STOXX was down 0.2 percent. Italy's FTSE MIB .FTMIB was trading flat after finishing down 0.2 percent on Monday following political jitters in Italy.

The STOXX Europe 600 Basic Resources index .SXPP dropped 1.4 percent, the biggest sector faller, after prices of major industrial metals such as copper CMCU3 , aluminum CMAL3 and nickel CMNI3 fell 0.5 to 1.2 percent.

Energy shares also slipped, with the regional oil and gas index .SXEP falling 0.8 percent after crude oil fell after its output rose in virtually every major export region despite plans by OPEC and Russia to cut production. O/R

Shares in Anglo American AAL.L , BHP Billiton BLT.L , Rio Tinto RIO.L and BP BP.L fell 1 to 2.4 percent.

Among mid-caps, Britain's CMC (NS:CMC) Markets CMCX.L and IG IGG.L both slumped more than 20 percent after UK's financial watchdog proposed stricter rules for CFD (contract for difference) products.

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