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Sept. 16, 2019, 5:15 a.m. EDT

European stock markets fall as oil producers surge and airlines tumble on Saudi attack

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By Steve Goldstein, MarketWatch


Reuters
Fires burn in the distance after a drone strike by Yemen's Iran-aligned Houthi group on Saudi company Aramco's oil processing facilities, in Buqayq, Saudi Arabia.

European stock markets fell on Monday as traders reacted to the news of the attack that took half of Saudi Arabia’s oil output offline, sending oil producers much higher while airlines struggled.

The broader Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -1.44%  fell 0.63% to 389.31 in a move that masked a major split.

Majors like BP /zigman2/quotes/202286639/delayed UK:BP -2.61%   /zigman2/quotes/207305210/composite BP -0.52%  and Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA -4.43%   /zigman2/quotes/205095589/composite RDS.A -2.02%  rallied as explorers including Aker BP /zigman2/quotes/210393113/delayed NO:AKERBP -5.73%  surged.

Airlines including Air France-KLM /zigman2/quotes/205396176/delayed FR:AF -5.77%  that are sensitive to jet fuel costs tumbled, as did cruise operator Carnival /zigman2/quotes/210414141/delayed UK:CCL -10.68%   /zigman2/quotes/200877079/composite CUK -3.36%  . Banks that have rallied of late also dropped, with Deutsche Bank /zigman2/quotes/205584254/delayed DE:DBK -3.39%   and Commerzbank /zigman2/quotes/200193353/delayed DE:CBK -6.07%   lower.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -1.65%  weakened 0.65% to 12387.81, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.59%   fell 0.78% to 5611.15 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -2.29%  fell 0.36% to 7341.03.

Oil prices were off the day’s highs but still strong, with Brent crude oil futures /zigman2/quotes/209704782/delayed UK:BRN00 -0.08%   up over $5 a barrel, a gain of about 9%.

“To take out over 5% of global supply (in the country with the bulk of ‘spare capacity’) in a single strike - a volume exceeding cumulative non-OPEC supply growth over 2014-2018 - is highly worrying,” said Jon Rigby, an analyst at UBS.

“While U.S.-China trade and U.S. oil supply growth have been the primary price drivers we see a return of the political risk premium as the market has been arguably complacent about risk events,” he said, adding its upside scenario would see oil getting to $80.

U.S. stock futures /zigman2/quotes/209948968/delayed ES00 +0.15%  were weaker as well, while the yield on the 10-year /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +0.38%  fell 4 basis points to 1.86%.

Outside of the big oil news, H&M shares /zigman2/quotes/208522175/delayed SE:HM.B -2.90%  fell 1.9% after climbing over 50% over the last 12 months. The Swedish chain reported a 12% rise in third-quarter sales and said it had well-receiver summer collections and increased market share.

/zigman2/quotes/210599654/delayed
XX : STOXX
350.36
-5.11 -1.44%
Volume: 0.00
May 29, 2020 5:50p
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
305.75 p
-8.20 -2.61%
Volume: 87.09M
May 29, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
11.11%
Market Cap
£61.45 billion
Rev. per Employee
N/A
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/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 23.14
-0.12 -0.52%
Volume: 10.21M
May 29, 2020 4:00p
P/E Ratio
19.35
Dividend Yield
10.80%
Market Cap
$77.51 billion
Rev. per Employee
$4.03M
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/zigman2/quotes/206428183/delayed
UK : U.K.: London
1,259.20 p
-58.40 -4.43%
Volume: 16.18M
May 29, 2020 4:35p
P/E Ratio
12.99
Dividend Yield
4.11%
Market Cap
£98.01 billion
Rev. per Employee
N/A
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/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 31.95
-0.66 -2.02%
Volume: 6.30M
May 29, 2020 3:59p
P/E Ratio
13.20
Dividend Yield
3.41%
Market Cap
$65.24 billion
Rev. per Employee
$4.75M
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/zigman2/quotes/210393113/delayed
NO : Norway: Oslo
kr 156.15
-9.50 -5.73%
Volume: 11.20M
May 29, 2020 4:25p
P/E Ratio
N/A
Dividend Yield
10.67%
Market Cap
kr56.23 billion
Rev. per Employee
kr22.53M
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/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
4.06
-0.25 -5.77%
Volume: 5.41M
May 29, 2020 5:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€1.74 billion
Rev. per Employee
€328,953
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/zigman2/quotes/210414141/delayed
UK : U.K.: London
1,057.50 p
-126.50 -10.68%
Volume: 12.28M
May 29, 2020 4:35p
P/E Ratio
4.84
Dividend Yield
0.00%
Market Cap
£7.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200877079/composite
US : U.S.: NYSE
$ 13.53
-0.47 -3.36%
Volume: 2.01M
May 29, 2020 3:59p
P/E Ratio
5.01
Dividend Yield
14.78%
Market Cap
$2.12 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205584254/delayed
DE : Germany: Frankfurt
7.55
-0.27 -3.39%
Volume: 174,674
May 29, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€417,912
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/zigman2/quotes/200193353/delayed
DE : Germany: Frankfurt
3.51
-0.23 -6.07%
Volume: 228,902
May 29, 2020 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€166,016
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
11,586.85
-194.28 -1.65%
Volume: 170,600
May 29, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,695.44
-75.95 -1.59%
Volume: 167,179
May 29, 2020 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,076.60
-142.19 -2.29%
Volume: 2.19M
May 29, 2020 4:59p
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/zigman2/quotes/209704782/delayed
UK : U.K. ICE Futures Europe
$ 37.81
-0.03 -0.08%
Volume: 6,229
June 1, 2020 3:48a
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/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 3,046.50
+4.50 +0.15%
Volume: 124,326
May 31, 2020 9:48p
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.66
+0.0025 +0.38%
Volume: 0.00
May 31, 2020 10:58p
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/zigman2/quotes/208522175/delayed
SE : Sweden: Stockholm
kr 142.15
-4.25 -2.90%
Volume: 7.28M
May 29, 2020 5:29p
P/E Ratio
16.15
Dividend Yield
0.00%
Market Cap
kr235.27 billion
Rev. per Employee
N/A
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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