Europe open: Basic resource stocks pace the decline

European stocks fell again on Wednesday, taking their cue from mostly negative sessions in the US and Asia, with commodities and energy issues under pressure as oil slid.

At 0900 GMT, the benchmark Stoxx Europe 600 index was down 0.9%, Germany’s DAX was down 0.8% and France’s CAC 40 was 0.7% weaker.

“The prospect of an oil output freeze and a rebound in the mining sector had been providing impetus for higher markets, but as energy and metal prices slip once again, momentum has slowed and equities have fallen,” said Rebecca O’Keeffe at Interactive Investor.

Basic resources were among the worst performers, with the Stoxx 600 index for the sector down 2.8%.

Energy issues were also in the red, with the sub-index for that sector down 1.3% amid weaker oil prices, as Saudi Arabia ruled out any production cuts and data showed a build-up in US crude stockpiles. Data from the American Petroleum Institute showed crude inventories rose 7.1m barrels last week to 506.2m, surpassing expectations for a 3.4m increase.

Comments from Iran also weighed, after it said proposals to cap output were “laughable”.

West Texas Intermediate was down 2.2% at $31.16 a barrel and Brent crude was 1.2% lower at $32.87.

In corporate news, Wolters Kluwer rallied after the Dutch business information and publishing company’s 2015 results came in better than expected.

London-listed housebuilder Barratt Developments was also on the front foot as it reported a 40% rise in first half profit.

German healthcare provider Fresenius advanced after saying it intends to lift 2016 net income by between 8% and 12%.

French car maker Peugeot raced ahead after it announced a return to profit in 2015, while Bouygues nudged higher after the company’s full year net profit beat analysts’ expectations.

There are no major Eurozone data releases due so eyes will be on the US, where the Markit services PMI is at 1445 GMT and new home sales are at 1500 GMT.