Weak Commodity Prices Putting Pressure on European Stocks

The benchmark European stock index fell on Tuesday (March 2nd) after hitting its strongest session in four months yesterday as shares of mining and energy companies, which have a weight on the index, fell on the weak commodity prices.

The European Stoxx600 index fell 0.2% in early trading, affected by the decline in Asian markets, after the largest regulator of the banking and insurance sectors in China expressed its concerns about the risk of bubbles bursting in foreign markets.

Shares of major oil companies fell between 1 and 2% as crude prices fell amid concerns about slowing demand in China. The oil and gas sector also fell 1.4%, while mining companies’ shares decreased by 0.6%.

Shares in German food delivery company Hello Fresh, which have more than doubled in the past year, fell 4.6% even as the company reported sales above market outlook in Q4.