Oil price slump leaves European equities flat
London (AFP) - A further sharp drop in global oil prices to fresh four-year lows on Friday following OPEC's decision to hold output pulled stocks in various directions, leaving Europe's main equity markets broadly flat.
London's benchmark FTSE 100 index slipped 0.01 percent to end the day at 6,722.62 points, while in Frankfurt the DAX 30 added 0.06 percent to 9,980.85 and Paris's CAC 40 rose 0.18 percent to 4,390.18 points.
The 12-nation Organization of Petroleum Exporting Countries (OPEC) decided Thursday to maintain its output ceiling at 30 million barrels per day, where it has stood for three years, sending prices plunging in an over-supplied market.
London Brent oil for January delivery sank early on Friday to $71.12 per barrel -- hitting the lowest level since July 7, 2010.
US benchmark West Texas Intermediate for January meanwhile had slumped to a four-year trough at $67.75.
"Shares in Europe flatlined on Friday after OPEC's decision not to cut production sent oil stocks lower but travel and leisure shares higher," said analyst Jasper Lawler at CMC Markets UK.
There were similar movements in United States.
Approaching midday, the Dow Jones Industrial Average had gained 0.27 percent to 17,875.95 points.
The broad-based S&P 500 slid 0.11 percent to 2,070.61, while the tech-rich Nasdaq Composite Index gained 0.27 percent to 4,800.43.
In London, shares in British oil major BP slumped 1.4 percent to 420 pence, and rival Royal Dutch Shell saw its 'B' share price drop 1.9 percent to 2,223 pence.
In Paris, French oil and gas giant Total shed 2.0 percent to 44.99 euros.
In the United States, Dow members ExxonMobil fell 3.6 percent to $91.10 and Chevron dropped 5.3 percent to $109.00. Oil services titan Halliburton plummeted 11.4 percent to $41.96, while independent producer Continental Resources tanked 20.7 percent to $40.58.
While slumping oil prices weigh on the energy sector, they also boost airline earnings by slashing the cost of jet fuel or kerosene, which is refined from crude.
Air France-KLM shares in Paris had rallied 6.4 percent to 8.48 euros.
British no-frills airline EasyJet meanwhile saw its shares climb 1.2 percent to 1,653 pence in London.
In New York, American Airlines jumped 8.5 percent to $48.78 and Delta Air Lines rose 6.3 percent to $47.02.
ETX Capital analyst Daniel Sugarman noted that "the drop in oil price means cheaper running costs" for airlines.
In foreign exchange trade on Friday, the euro slid to $1.2436 from $1.2467 late in New York on Thursday.
The single currency rose to 79.54 pence from 79.22 pence late Thursday, while the pound edged up to $1.5637 from $1.5736.
On the London Bullion Market, gold slid to $1,182.75 an ounce, compared with $1,194.75 late on Thursday.
