European share prices wilt in face of record oil prices

European share prices wilt in face of record oil prices

London: European shares wilted Monday, 16 October, under pressure from record oil prices and disappointing third quarter results from US banking giant Citigroup.

In London the FTSE 100 shed 1.28% to end at 6,644.50, while in Paris the CAC 40 fell 0.62% to finish at 5,807.44. In Frankfurt the Dax lost 0.89% to close at 7,969.47.

The Euro Stoxx 50 index of leading eurozone shares fell 0.92% to 4,434.98.

On the currency market the dollar wobbled against the euro ahead of a meeting later in the week of Group of Seven finance ministers that analysts said was unlikely to affect current trends in exchange rates.

The single European currency in late-day trade was at $1.4215 after 1.4176 late Friday in New York.

On Wall Street the Dow Jones Industrial Average was down 0.89% at 13,967.81 at midday while the tech-heavy Nasdaq was off 1.01% at 2,777.22.

The market had drifted up in initial trades and then turned lower as oil prices surged to record peaks, breaching $85 in New York for the first time, as traders tracked heightened tensions between Turkey and Kurdish rebels in northern Iraq.

In London North Sea Brent broke the $82-a-barrel threshold for the first time.

Meanwhile investors digested quarterly earnings from US banking giant Citigroup that were down 57% from a year ago but still ahead of most analyst expectations. Citigroup shares fell 2.2% to $46.81.