By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Farewell, European stock market
gains.
Most of the region's stock benchmarks went from positive to
negative territory on Tuesday after the European Commission slashed
its growth outlook for the European Union and the eurozone, citing
increased geopolitical risks and a weaker global economy. The
commission now sees 0.8% economic growth in the eurozone for 2014,
down from 1.2% expected previously.
A slide in oil prices also hammered the benchmarks lower, as
most oil firms slumped after a surprise announcement from Saudi
Arabia.
Market reaction: The Stoxx Europe 600 index dropped 1% to close
at 330.88, after trading as high as 335.82 earlier in the day.
In Italy, where the commission now expects negative growth rates
in 2014, the FTSE MIB slumped 2.2.% to 18,934.63.
France's CAC 40 index lost 1.5% to 4,130.19, while Germany's DAX
30 index fell 0.9% to 9,166.47. The U.K.'s FTSE 100 index gave up
0.5% to 6,453.97.
Oil-stock blues: Oil-related companies weighed on the indexes
after Saudi Arabia late Monday unexpectedly cut prices for crude
sold to the U.S., hammering the current crude contract down to a
three-year low.
Shares of Seadrill Ltd. slumped 8.6%, Premier Oil PLC dropped
5.7%, Statoil ASA lost 3.4%, Total SA (TOT) fell 3.8% and BP PLC
(BP) gave up 3%. Read: Oil firms slump, Imperial Tobacco climbs:
Europe's big stock movers
You're invited: A free evening event focusing on investing
opportunities in Europe
Will you be in London on Dec. 3? Then you're invited to our
MarketWatch Investing Insights event, "The worse Europe gets, the
more you should invest"
Governments are in trouble, reform efforts have stalled,
unemployment is climbing... the news from the eurozone is bleak.
And investors are fleeing. But that's a mistake: The worse the
economic data from Europe get, the more you should be buying. Why?
Because actions by the ECB will boost asset prices and the stock
market in particular. And, big exporters can grow sales. Lower
costs and steady sales translate into higher profits and dividends.
Join us for an evening of cocktails and conversation to explore
these opportunities.
Our panel will be led by MarketWatch Columnist Matthew Lynn, a
renowned financial journalist based in London and the author of
"Bust: Greece, the Euro and the Sovereign Debt Crisis." He'll be
joined by Mark Hulbert, MarketWatch columnist and editor of the
Hulbert Financial Digest. This event is free, but RSVPs are
required. It will be held Wednesday evening, Dec. 3, in London. For
more information or to RSVP, send an email to
marketwatchevent@wsj.com
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