RTTNews - The European markets fell on Tuesday, as Deutsche Bank led banking stocks lower after reporting a jump in its provision for loan losses and BP paced declines among energy stocks after reporting a sharp drop in second quarter profit.
The Conference Board in the U.S. said that its consumer confidence index fell to 46.6 in July from an unrevised 49.3 in June. Economists had been expecting a much more modest decline by the index to a reading of about 49.0.
Crude for September delivery fell $1.54 to $66.84 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 30 index of pan-European blue chips closed 0.96% lower at 902.85 points, while the narrower DJ Stoxx 50 index fell 0.95% to 2,240.95 points.
Around Europe, the U.K.'s FTSE 100 index slipped 1.25% to 4,528.84, while France's CAC 40 index fell 1.23% to 3,330.97 and Germany's DAX index dropped 1.46% to 5,174.74.
Deutsche Bank, Germany's biggest lender, slid 11.4% after the company reported a surge in loan loss provisions for the second quarter to ?1 billion, overshadowing a 68% jump in net profit.
BNP Paribas, France's largest bank, dropped 5.1%, while UBS, Switzerland's largest, slipped 3% and Royal Bank of Scotland, Britain's second biggest lender, fell 4%.
BP, Europe's biggest oil company, sank 3% after the company reported a sharp drop in second quarter profit and said it had increased its cost reduction targets for 2009 by 50% to $3 billion.
Shares of other oil companies also suffered losses after crude oil prices dropped. Royal/Dutch Shell, the region's second biggest oil company, fell 1.4% and Total, the third biggest, dropped 2.8%.
Yara International, the world's largest fertilizer maker, lost 4.5% after Morgan Stanley downgraded the stock to underweight from equal weight.
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