By Carla Mozee, MarketWatch
European stocks finished lower Friday, leaving the regional benchmark with a tiny weekly loss, with oil and gas shares pushed down on disappointment stemming from OPEC’s agreement to extend production cuts.
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.10% ended 0.2% lower at 391.35, led by the energy and financial sectors. But telecom, industrial and consumer-related shares logged modest gains.
The Stoxx Europe 600 Oil & Gas Index /zigman2/quotes/210599627/delayed XX:SXEP +0.09% slumped 1.1%, under pressure after oil prices sank Thursday and were volatile Friday. The selloff came as the Organization of the Petroleum Exporting Countries and non-OPEC members didn’t include deeper crude-output cuts as part of a renewed agreement to cap production through March 2018. Output will remain at 1.8 million barrels a day.
Among oil-services companies, shares of Subsea 7 SA /zigman2/quotes/202505552/delayed NO:SUBC +0.85% fell 2.4%, TechnipFMC PLC /zigman2/quotes/206450192/delayed FR:FTI +4.53% closed down 0.8% and SBM Offshore NV /zigman2/quotes/202370405/delayed NL:SBMO +1.98% moved 0.7% lower.
Among oil producers, OMV AG /zigman2/quotes/205851954/delayed XE:OMV +2.01% dropped 2.7%, Statoil ASA was drawn down 2% and France’s Total SA /zigman2/quotes/206172043/delayed FR:FP +0.74% gave up 0.6%.
“OPEC fell short of providing an upside surprise factor beyond what was already priced in,” said Helima Croft, head of commodity strategy at RBC Capital Markets, in a Thursday note.
The oil sector pared deeper declines, helping the Stoxx Europe 600 record just a fractional loss for the week.
Stock movers: On the German DAX 30, shares of auto makers fell after a Der Spiegel newspaper report that U.S. President Donald Trump complained to European officials about Germany’s exports. Trump reportedly said the Germans sell “millions” of cars in the U.S., and “we’ll stop that.”
Shares of BMW AG /zigman2/quotes/209548467/delayed DE:BMW +1.74% fell 1.1%. Daimler AG /zigman2/quotes/201850364/delayed XE:DAI +0.48% and Volkswagen AG /zigman2/quotes/203434344/delayed XE:VOW3 +0.55% each gave up 0.6%.
Petrofac Ltd. /zigman2/quotes/202340229/delayed UK:PFC +6.57% tumbled 9.7, extending its 30% plunge on Thursday after the oil services company said it suspended Chief Operating Officer Marwan Chedid until further notice. The company is under U.K. investigation on suspicion of bribery, corruption and money laundering. Petrofac said it’s cooperating with authorities.
Indexes: Germany’s DAX /zigman2/quotes/210597999/delayed DX:DAX +0.0049% ended lower by 0.2% at 12,602.18. France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.0075% pared its decline, closing down less than 1 point at 5,226.58 and Italy’s FTSE MIB fell 0.4% to 21,210.57.
But the U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.08% rose 0.4% for its highest close, at 7,547.63. That move came as the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +1.0729% fell below $1.28 following a poll that showed the Conservative Party’s lead over the Labour Party continued to shrink before the U.K.’s June 8 general election.
Meanwhile, the euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.1562% bought $1.1172, down from $1.1217 late Thursday in New York.