US SMALL/MIDCAPS-Energy shares offset European debt woes

NEW YORK, Nov 29 (BestGrowthStock) – Small and midcap shares fell
on Monday as investors fretted that Europe’s sovereign debt
woes could spread, but a late day reversal in energy shares
helped indexes recoup much of their earlier losses.

European Union finance ministers endorsed an 85 billion
euro loan package to help Ireland bridge its deficit, but
investors said there was little clarity on how the 16-nation
bloc might handle a wider crisis involving Spain and Portugal
or if it had the political will to do so. For details, see
[ID:nLDE6AS08D]

The jitters over Europe weighed on the market for much of
the day with industrial shares among the laggards. The midcap
industrials sector (.4GSPI: ) fell 0.3 percent, while Agco Corp
(AGCO.N: ) gave up 3 percent at $44.64.

“The impact of a lot of this is, at the end of the day, on
global demand,” said Lawrence Creatura, portfolio manager at
Federated Clover Investment Advisors in Rochester, New York.

Creatura noted that while small and midcap companies don’t
have as much international exposure as their larger
counterparts, it is still an important market for them.

“Many small companies have significant amounts of their
revenue generated from overseas, including Europe. That can be
especially observed in specific sectors like industrials,” said
Creatura.

Energy shares recovered in the afternoon as oil prices
jumped and the U.S. dollar eased off its highs. Midcap energy
shares (.4GSPE: ) rose 0.7 percent, while small cap Basic Energy
Services (BAS.N: ) climbed 6.9 percent to $14.47.

Also in the sector, oilfield services provider Superior
Energy Services (SPN.N: ) jumped 6.1 percent to $33.32 after
Barclays Capital raised its rating on the stock to
“overweight”. [ID:nSGE6AS0EP]

The S&P MidCap 400 index (.MID: ) dipped 0.2 percent, while
the S&P SmallCap 600 index (.SML: ) was off 0.1 percent. In
comparison, the benchmark S&P 500 (.SPX: ) slipped 0.1 percent.

(Reporting by Leah Schnurr; Editing by Kenneth Barry)

US SMALL/MIDCAPS-Energy shares offset European debt woes