4:00 PM European equities extended losses as oil prices continued to slide. UBS Group reported an unexpected outflow of 3.4 billion Swiss francs from its wealth management business. BP Plc posted its worst results in more than 20 years and announced 3,000 job cuts.
European equities extended losses as oil prices continued to slide and BP Plc and UBS Group disappointed investors.
Oil prices extended losses again after the production curb deal between OPEC and other oil producing nations appeared less likely.
Brent crude oil futures plunged 3.4% to $33.08, while West Texas Intermediate crude oil tumbled 4.30% to $30.26.
The impact on energy stocks was heavy, especially after BP reported disappointing results. BP tumbled 8.7%, Tullow Oil erased 7.5%, Royal Dutch Shell lost 4.7%, Repsol in Spain declined 5.8%, and Total in France lost 4.5%.
In Germany, the unemployment rate dropped to 6.2% in January, the lowest level since the reunification of the country.
In London, FTSE 100 index fell 138.09, or 2.28%, to 5,922.01 and in Germany, the DAX index declined 176.84, or 1.81%, to 9,581.04.
In Paris, the CAC 40 index shed 108.34, or 2.47%, to 4,282.99.
plummeted 8.7% to 335 pence after the British oil giant reported its worst annual result in more than 20 years and announced 3,000 job cuts due to impact of low oil prices.
The company reported a $2.2 billion loss in the fourth quarter and a replacement cost loss of $5.2 billion, compared with a profit of $8.1 billion in 2014.
BP maintained its quarterly dividend at least for now, but investors are increasingly skeptical that the company will be able to maintain the current rate payout.
Danske Bank A/S
jumped 4.1% to 188 Danish crowns after the bank announced a dividend, a share buyback program, and higher than expected pre-tax profit due to larger trading income.
The largest Danish bank announced a dividend of 8 Danish crowns per share and plans to buy back shares worth 9 billion crowns.
Pre-tax profit was 866 million crowns in the fourth quarter ahead of 615 million crowns.
Infineon Technologies AG
plunged 5.8% to €11.73 after the German semiconductor maker provided disappointing guidance on margins.
Revenue grew 38% to €1.56 billion in the first quarter, compared with the same period a year ago.
Net profit increased 12% to €152 million from the same period a year earlier.
The growth followed the acquisition of International Rectifier and strength in the auto parts business.
For the next quarter, the company expects revenue growth between 1% and 5% and a margin of 13%. For the fiscal year ending in September, Infineon expects 11% to 15% revenue growth and 16% segment margin.
J Sainsbury Plc
added 2.5% to 251 pence after the company agreed to buy Home Retail for £1.3 billion to expand its online business.