Europe midday: Resources and oil stocks pace the decline

European stocks fell on Friday following a steep decline in Chinese markets as oil prices tanked, falling below the $30 mark.

At midday, the benchmark Stoxx Europe 600 index was down 1.6%, France’s CAC 40 was 1.3% weaker and Germany’s DAX was off 1.1%.

The Shanghai Composite index fell 3.5%, closing in bear market territory, while Hong Kong’s Hang Seng slid 1.5%. A bear market is when the price of an asset drops 20% from its peak.

Figures out earlier showed Chinese banks gave 597.8bn yuan in new loans in December down from 708.9bn the previous month and prompting more worries about the state of China’s economy.

"Last night’s Chinese selloff has once again seen the Asian powerhouse move back into bear market territory for the second time in just over six months. This overnight performance has been enough to trigger a selloff in across the board in Europe," said Alastair McCaig, market analyst at IG.

Oil prices were under pressure, falling below the $30 level again. West Texas Intermediate slumped 5.1% to $29.61 a barrel, while Brent crude dropped 3.9% to $29.69 after hitting a fresh 12-year low.

The Stoxx 600 oil and gas index fell 2.9%. Basic resources took the biggest beating, however, with the sub index for that sector down a whopping 5.5%.

BHP Billiton paced the decline, falling sharply after saying it expects to book a $7.2bn (£5m) impairment charge on the value of its onshore US assets in its half-year results due to the steep drop in oil prices.

Elsewhere, French supermarket operator Carrefour was a touch weaker after its fourth quarter revenue met analysts’ expectations.

Beleaguered German car maker Volkswagen also skidded after data from the European Automobile Manufacturers’ Association revealed that its market share in Europe fell last year for the first time since 2007.

On the upside, Swedish clothing retailer Hennes & Mauritz was in the black after posting a 10% rise in December sales.

London-listed BT Group rose after the Competition and Markets Authority approved its plans to acquire EE.

Shares in French supermarket group Casino gained after the company said it will sell its majority stake in Thai hypermarket operator Big C Supercenter.

On the macroeconomic front, figures released by Eurostat showed the Eurozone trade surplus came in at a nine-month high in November.

The trade surplus rose to €22.7bn in November compared with a revised €19.8bn the previous month, above consensus estimates for €21bn.

Seasonally-adjusted exports were up 1.6% while imports nudged down 0.1%.

Still to come, US Empire manufacturing and retail sales are at 1330 GMT, while industrial production is at 1415 GMT. Business inventories at 1500 GMT, along with University of Michigan sentiment.