Financial Times FT.com

European resource stocks take a beating

By Rachel Morarjee

Published: December 5 2008 10:26 | Last updated: December 5 2008 18:34

European equities tumbled this week as investors took stock of an increasingly bleak economic picture and offloaded commodities stocks in response to a grim stream of data.

“It is a classic recession play. Oil and metals stocks are suffering because you don’t need steel girders for buildings in a downturn or use as much energy. Resource stocks have been absolutely hammered,” said Edmund Shing, a equity strategist at BNP Paribas.

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