Europe close: Markets sharply lower as sentiment turns negative

Stocks in Europe closed down sharply on Thursday, with lower oil prices and commodity stocks stoking negative sentiment, and concerns about the health of the global economy growing.

The Stoxx 600 finished 1% lower after a choppy trading session, with all sectors ending up in the red.

In London, the FTSE 100 slipped 1.1%, while Germany’s DAX lost 1.25% and France’s CAC 40 fell 1%.

Markets in the region followed the lead of Asia, which were also down sharply on Thursday after a weaker dollar dragged on Japanese equities and South Korea’s central bank unexpectedly cut interest rates to a record low.

Oil prices fell throughout the day, with traders taking their profits after a series of more positive sessions.

Brent crude was last down 1.14% at $51.92 per barrel and West Texas Intermediate lost 1.31% at $50.57.

Basic resources was the worst performing sector across the continent, losing 2.58% as copper prices dived south.

Glencore ended up with losses of more than 5% after it revealed an agreement to sell a 9.99% stake in its agricultural business to British Columbia Investment Corporation.

Antofagasta managed a 6.3% decline after a price target cut from Canaccord Genuity.

Plastics supplier Essentra sustained its swingeing loss, closing down 27.7% after issuing a profit warning before markets opened.

German utility E.ON ended 7.2% lower after approval from shareholders to spin off its conventional energy business.

Hotel operator Accor was down 2.8% after a price target slashing at the hands of Credit Suisse.

Multinational telecom Vodafone lost almost 5% and dragged down the entire telecoms sector, after it revealed plans to combine its New Zealand business with locally listed subscription television operator Sky.