LONDON: European stock markets mostly rebounded Tuesday but London extended losses as mining shares lost their shine, while oil prices slumped almost a dollar on the eve of a crucial OPEC meeting.
Asian traders had earlier moved cautiously, with the recent Trump- rally in stocks subdued by profit-taking, uncertainty over a key vote in Italy at the weekend and worries about an OPEC plan to cut oil production.
“Equities are mixed, with the FTSE in the red on continued oil price volatility and metals prices pulling back from highs,” said Mike van Dulken, head of research at traders Accendo Markets.
Stocks worldwide have won strong support since Donald Trump was elected US president, on hopes that his spending policies will ramp up the world’s top economy.
However, analysts said dealers were taking a breather as other issues come to the fore, with the oil reduction plan in immediate focus.
There are increasing concerns that members of OPEC will not be able to agree the details of an agreement in September to reduce output and support prices, with Iran and Iraq saying they should be exempt.
OPEC members and non-members including Russia are scurrying to hammer out a deal before the group’s twice-yearly meeting on Wednesday.
