European Stocks Decline as Qatar Crisis Jolts Energy Sector

(Bloomberg) -- European stocks fell, with shares in energy companies extending Friday’s loss after Saudi Arabia and three other Arab countries cut off most diplomatic and economic ties to gas-rich Qatar.

The Stoxx Europe 600 Index slid 0.1 percent at the close, halting a two-session gain. Markets are closed for a public holiday in a number of European countries including Germany, Switzerland, Norway, Denmark, Austria, Greece and Ireland.

  • The Stoxx oil & gas sector fell 0.6 percent after dropping 1.3 percent on Friday, its biggest decline since April. The sector is down 6.6 percent this year, the worst performance among industry groups in Europe.
  • Investors should be cautious about equity markets following recent sharp gains and as red flags start to appear, JPMorgan equity strategists including Mislav Matejka and Emmanuel Cau wrote in a note, citing mixed U.S. macro indicators among other effects.

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