European markets inched lower due to slump in oil prices; DMGT 6.84% down

European Markets

Stocks in Europe are on the negative territory on Thursday driven by the deteriorating oil prices the previous day on news that OPEC is likely to prolong output cuts.

The FTSE 100 in the U.K. ended marginally higher by 0.04 percent. DAX in Germany however was 0.17 lower and French CAC as well by 0.08 percent. Meanwhile the pan-European Stoxx 600 struggled to acquire gains on the day as it inched lower by 0.06 percent. Still, financial and household goods services closed the session on a positive note.

Manager of multinational portfolio of companies Daily Mail and General Trust (DMGT) didn’t also perform well as they fell as much as 6.84 percent in shares following its release of an 11 percent decline in adjusted operating profit for the first half of this year.

British-based food processing company Tate & Lyle said their sales rose more than 17 percent for 2017 due to the sluggish pound sterling following U.K.’s exit to the European Union. Yet, its stocks settled 5 percent lower.

World’s largest brick producer Wienerberger however didn’t go with the flow as it finished 6 percent higher. Asset management and financial services company Intermediate Capital Group also jumped more than 14 percent driven by strong earnings outcome.

Regardless of the strong gains from the energy sector, oil was at gunpoint following the statement of an OPEC representative in Vienna saying that oil output will be reduced for nine months, instead of the agreed six months, in an attempt strengthen the weak oil prices and prevent oversupply. As the European markets close, non-OPEC members also favored the extension, according to a Reuters report.

Markets in Sweden, Finland, Austria, Norway, Switzerland and Denmark are shut on Thursday due to public holiday.

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