European stocks slid to a 15-month low as falling oil prices and results from companies including Zurich Insurance Group AG and Royal Dutch Shell Plc exacerbated investor concern about global growth.
Zurich Insurance slid 11 percent after predicting a second straight quarterly loss for its biggest unit. Shell lost 7.3 percent after saying quarterly profit plunged as the slide in oil prices deepened. Seadrill Ltd. plummeted 29 percent as Bank of America Corp. cut its rating to the equivalent of sell. BHP Billiton Ltd. helped drag a gauge of commodity producers to the worst performance on the Stoxx Europe 600 Index, falling 7.4 percent after trimming its full-year iron-ore output forecast. Glencore Plc fell 9.9 percent.
The Stoxx 600 erased Tuesday’s rebound, tumbling 3.2 percent to 322.29 at the close of trading. Concern that a slowdown in China will spread and plunging oil prices have weighed on investor sentiment, dragging the European gauge down 12 percent this year and into a bear market last week. Oil extended its drop from the lowest close in more than 12 years today. The VStoxx Index measuring volatility expectations for euro-area shares jumped 14 percent.
The Stoxx 600 broke below its 200-week moving average at 324.15, hitting its lowest level since December 2014. Still, sentiment is so negative that technical indicators are not enough to trigger a rebound, according to Saxo Bank A/S trader Andrea Tueni.
Source : Bloomberg