July 12, 2012 / 8:18 AM / 7 years ago

STOCKS NEWS EUROPE-Oil price drop to benefit European firms -CS

The drop in oil prices - with Brent crude down by more than a fifth from its peak in early March - should benefit consumer durables and beverages as falling fuel and heating bills enable people to spend more, says Credit Suisse.

Among single stocks, Credit Suisse suggests focusing “on European stocks for which energy and industrial commodities are a significant part of input costs and which have high pricing power”, such as BMW and BASF.

It estimates that a 25 percent drop in oil prices will add 4.25 percent to European corporate profits, boost the region’s gross domestic product (GDP) by at least 0.5 percentage points, while pushing down inflation.

The impact on profits for United States is less, at 2.25 percent, as the energy sector - which would suffer - has a bigger weighting there.

Reuters messaging rm://antonina.vorobyova.thomsonreuters.com@reuters.net

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