European stocks slide for a second day as banks lead declines

European equities fell in a broad decline, heading for their worst back-to-back drop in a month, with lenders leading losses amid falling bond yields.

The Stoxx Europe 600 Index fell 0.8 percent at 8:36 a.m. in London, as a decline in all 19 industry groups sent the benchmark below its 50-day moving average. It slid yesterday as oil slumped into a bear market, weighing on commodity and energy shares.
Energy producers fell further on Wednesday, extending their worst performance among Stoxx 600 groups this year.

Macquarie Group lowered its oil price estimates for Brent in the three years through 2019, and cut its ratings on companies including BP Plc, Royal Dutch Shell Plc, Eni SpA and Repsol SA.

If the key support levels of $43 dollars a barrel for Brent and $42 for U.S. WTI are breached, “$40 could come into view very quickly indeed and drag equity markets down with them,” Michael Hewson, an analyst at CMC Markets in London, wrote in a note.

Financial-services shares were also among the biggest losers, with Provident Financial Plc sinking the most on record after saying profit at its consumer credit division will nearly halve in 2017.

In the U.K., Prime Minister Theresa May is set to publish a legislative program Wednesday and Queen Elizabeth II will read out the plans to lawmakers.

Source: Bloomberg Pro Terminal

Jr Trader Ivan Ivanov

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