Declines in energy shares dragged lower European equities that have managed to stay afloat most of the day despite plunges in Spanish equities.
The Stoxx Europe 600 Index dropped 0.3 percent at 4 p.m. in London, erasing an advance of as much as 0.8 percent. Spain’s IBEX 35 Index dropped 2.7 percent, set for its biggest plunge in three months, after the nation’s prime minister lost his majority in an inconclusive weekend election.
The Stoxx 600 is sliding after posting its best week in a month, thanks to a jump in exporters and financial companies following the first Federal Reserve interest-rate increase in almost a decade. The gauge traded at 15.7 times estimated earnings on Friday, less than at its April peak and lower than the valuation for the Standard & Poor’s 500 Index.
While the Stoxx 600 advanced 5.5 percent this year through Friday, it gave up most of its initial rally amid global-growth concerns. It closed 13 percent below the record reached in April.