Euro zone producer prices fall for fifth-straight month in Feb
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L'Oreal gains on Aesop deal
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Oil stocks fall 1.4%, leading sectoral losses
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Europe's STOXX 600 slips 0.1%
April 4 (Reuters) - European shares slipped on Tuesday as heavyweight energy stocks fell on worries about demand for oil after weak economic data in the U.S, while euro zone producer prices declined for a fifth-consecutive month in February.
The STOXX 600 index closed 0.1% lower, with oil and gas stocks reversing early gains and weighing on the pan-European index.
Oil majors such as Shell, BP, Tenaris and TotalEnergies shed between 1.0% and 2.5% as crude prices gave up early gains after data showed U.S. manufacturing activity slumped in March to the lowest level in nearly three years as new orders plunged.
"There is also growing speculation that the recent OPEC output cut was predicated on anticipated falling demand going forward, rather than a pure pricing play per se," said Stuart Cole, head macro economist at Equiti Capital.
Energy stocks had clocked their biggest one-day gain since November on Monday after OPEC+ announced voluntary production cuts of 1.66 million barrels per day (bpd) from May until the end of 2023.
"The surprise production cut from OPEC+ continues to stoke concerns around inflation," Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said in a note.
Britain's commodity-heavy FTSE 100 slid 0.5%, snapping a six-day winning streak and lagging broader markets.
Meanwhile, euro zone producer prices fell for a fifth-consecutive month and by more than expected in February, almost entirely due to declining energy prices.
Producer prices are an early signal of inflationary trends because their changes are usually transferred onto final consumers.
Euro zone consumers also cut their inflation expectations in February and took a more optimistic view on growth and unemployment, an ECB survey showed.
Credit Suisse's chairman apologised for taking the bank to the brink of bankruptcy, as he faced shareholder fury over the abrupt demise of a national icon. Shares of the Swiss bank rose 0.9%.
L'Oreal shares rose 1.2% after the cosmetics group struck a deal with Brazil's Natura & Co to buy Aesop, its Australian luxury brand, at an enterprise value of $2.53 billion.
"This pivot towards a more luxury and hedonistic brand suggests L'Oreal is padding out its offering to help insulate against an increasingly tough market," Lund-Yates said.
(Reporting by Shubham Batra, Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru; Editing by Uttaresh Venkateshwaran, Sherry Jacob-Phillips and Sharon Singleton)
BP (BP.)
