European markets finished in the red on Thursday, as a slump in health care stocks weighed on investors, despite a recovery in oil prices and mining stocks.
The pan-European STOXX 600 (^STOXX) was off some 0.45 percent provisionally, with most sectors closing lower. All major European bourses closed in negative territory on Thursday, with London's FTSE 100, Germany's DAX and France's CAC 40 all ending between 0.2 and 0.3 percent lower. Several peripheral bourses, however, closed in the black.
Health care was one of Europe's worst performing sectors, closing down some 2.4 percent, after credit rating agency, Moody's cut its outlook on the global pharmaceuticals industry from "positive" to "stable", according to Reuters. Roche (Swiss Exchange: ROG-CH) was the sector's worst stock of the day, off 4.7 percent. AstraZeneca (London Stock Exchange: AZN-GB) and Shire (: @SHPLFDC16J-GB) also closed sharply lower.
Oil prices fluctuated between highs and lows on Thursday as pessimism over a global supply glut continued to impact sentiment. Brent recovered, trading just above the flat line at Europe's close, hovering around $37, while U.S. crude was further in the green, trading just below $35.
Oil stocks however had an overall optimistic day with Seadrill (Oslo Stock Exchange: SDRL-NO) closing up 11 percent, Tullow Oil (London Stock Exchange: TLW-GB) posting gains of 8.9 percent and Petrofac (London Stock Exchange: PFC-GB) up 5.3 percent.
The basic resources stocks continued their recent good run, outperforming all other sectors on Thursday. A number of miners closed sharply higher after several brokers gave bullish outlooks on their stock.
Anglo American (London Stock Exchange: AAL-GB) came off session highs, to end over 1.5 percent up after Deutsche Bank raised its price target for the stock. Glencore (London Stock Exchange: GLEN-GB) rose 5.6 percent after UBS raised its price target for the stock.
The rally in mining stocks was helped by a solid rise in the price of metals on Thursday, with BHP Billiton (London Stock Exchange: BLT-GB) up over 2 percent. This is in spite of official data showing Chinese factory activity slowed in February .
On the earnings front, German sportswear maker Adidas (XETRA:ADS-DE) reported a fourth-quarter net loss of 44 million euros ($47.79 million), more than analysts expected. The firm said however it was optimistic on sales and profit for 2016 however, due to big events like the Rio Olympics. Shares reacted negatively, off 2 percent.
And Germany's Evonik (: @EVKNLFDC15X-GB) slid 12 percent, finishing at the bottom of the STOXX 600, after the chemical maker said 2016's adjusted core earnings could tumble as much as 19 percent.