LONDON (Reuters) – European stocks faltered at the start of the trading year on Tuesday as an impressive run-up in metals and mining stocks reversed, while strength in oil companies and banks was not enough to stop the slide.
The pan-European STOXX 600 <.STOXX> index dipped 0.2 percent in early deals, while euro zone stocks <.STOXXE> fell 0.3 percent.
Basic resources stocks weighed the most, with the sector index <.SXPP> down 0.6 percent. Rio Tinto The mining sector had surged to a five-year high at the end of last week, riding a wave of rising copper and other base metal prices, but Tuesday’s dip suggested investors were taking profits after a strong run. Oil, which marked its highest start to the trading year since 2014, supported benchmarks with oil majors across the region rising in concert with crude. Statoil Financials also rose with Santander In other eye-catching moves, Lufthansa The German carrier had backed out of a deal to buy Niki’s assets in mid-December due to competition concerns.
Germany-listed shares in South African retailer Steinhoff Broker moves also drove trading: an upgrade to “buy” from Sydbank sent Vestas Wind Europe’s mining sector at five-year high: http://reut.rs/2CaVart
(Reporting by Helen Reid; editing by Tom Pfeiffer)