Europe trades lower as oil declines hit markets – CNBC

11 months ago Comments Off on Europe trades lower as oil declines hit markets – CNBC

Shares of Scottish oil services and engineering firm Weir Group were down 2.8 percent after the group posted a 46 percent fall in full-year pretax profit in 2015 on the back of its customers delaying spending amid low oil prices. The group’s CEO told CNBC on Wednesday that 2016 would be a “challenging year.”

Meanwhile, aircraft maker Airbus saw its share price fall 2.7 percent around mid-morning. Earlier in the day, the engineer posted 2015 profit in line with forecasts and announced plans to reverse part of a planned production cut of A330 aircraft.

Shares of Iberdrola were down 1 percent after the utility company reported a 4 percent rise in 2015 net profit of 2.42 billion euros, slightly below forecasts made by analysts polled by Reuters.

European equities saw a lackluster open after hopes of an oil production cut were dashed on Tuesday after Saudi Arabia’s oil minister Ali bin Ibrahim Al-Naimi signaled no cuts would happen to tackle the global supply glut.

Speaking at the CERAWeek conference in Houston, Naimi said cuts were “not going to happen because not many countries are going to deliver even if they say they will cut production — they will not deliver. So there is no sense in wasting our time seeking production cuts.”

U.S. oil prices fell as much as 5 percent on Tuesday after the remarks. On Wednesday morning, international benchmark Brent crude futures were down $0.48, or 1.44 percent, at $32.79 a barrel. U.S. crude futures fell $0.76, or 2.38 percent, to $31.12 a barrel.

Meanwhile in Asia overnight, stocks traded mostly down Wednesday morning, with a combination of low oil prices, concerns over China and weak overnight data weighing on market sentiment.

In other news, Republican presidential candidate Donald Trump is projected to take the Nevada caucus, NBC News projected as the last polls closed at midnight ET. The race for second place between his Republican rivals is heating up, with Marco Rubio leading Ted Cruz in the latest NBC poll.

Follow CNBC International on Twitter and Facebook.

Europe trades lower as oil declines hit markets – CNBC