London - European shares edged off 7-year highs on Thursday, hit by a
slide in oil prices and a mixed batch of corporate results, with
disappointing updates from companies including utility Centrica and
airline Air France-KLM.
Centrica's shares fell 7.7%, on track for
its biggest one-day drop since 2008, after slashing its dividend and
reporting a fall in its full-year profit, as it was impacted by slumping
energy prices.
Oil prices, which had been recovering in recent weeks, also tumbled on Thursday as US inventories were expected to hit record highs. The fall in crude weighed on the oil and gas sector, which was down 1.2%.
The broader FTSEurofirst 300 index was down 0.3% at 1 511.18 points at 10:20.
While falling fuel prices have been seeing as beneficial for airlines, Air France-KLM said on Thursday they were largely offset by overcapacity on some routes and currency swings, prompting the company to ease a key debt reduction goal. Its shares fell 4.9%.
Oil prices, which had been recovering in recent weeks, also tumbled on Thursday as US inventories were expected to hit record highs. The fall in crude weighed on the oil and gas sector, which was down 1.2%.
The broader FTSEurofirst 300 index was down 0.3% at 1 511.18 points at 10:20.
While falling fuel prices have been seeing as beneficial for airlines, Air France-KLM said on Thursday they were largely offset by overcapacity on some routes and currency swings, prompting the company to ease a key debt reduction goal. Its shares fell 4.9%.
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