RTTNews - The European markets fell for the second day on Monday, as mining and energy stocks slipped after metals and crude oil prices declined.

The Japanese economy pulled out of its worst recession since World War II in the second quarter on government stimulus measures and strong exports. The Cabinet Office said the country's real gross domestic product expanded 3.7% on an annualized basis during the three months to June, after shrinking for four straight quarters. However, the annualized growth was smaller than the 3.9% increase expected by economists, following a revised decline of 11.7% in the first quarter.

Compared to the previous quarter, the world's second largest economy grew 0.9% versus a 3.1% fall in the prior quarter. Economists had expected a sequential rise of 1%. The quarterly growth was also the first rise in five quarters.

The Federal Reserve Bank of New York said its general business conditions index rose to 12.1 in August from a negative 0.6 in July, with a positive reading indicating an expansion in the manufacturing sector. Economists had been expecting the index to increase more modestly to 3.0.

Crude for September delivery fell $1.76 to $65.75 a barrel on the New York Mercantile Exchange, by the time the European markets closed, on concern about the pace of global economic recovery.

The FTSEurofirst 300 index of pan-European blue chips closed 2.02% lower at 921.96 points, while the narrower DJ Stoxx 50 index fell 1.87% to 2,281.63 points.

Around Europe, the U.K.'s FTSE 100 index fell 1.46% to 4,645.01, while France's CAC 40 index dropped 2.16% to 3,419.69 and Germany's DAX index slipped 2.20% to 5,201.61.

Mining stocks lost ground after copper, lead, nickel, zinc and tin prices declined in London. BHP Billiton, the world's biggest miner, fell 3.2%, while Rio Tinto, the third biggest, dropped 4.7% and copper miner Antofagasta slipped 4.2%.

Similarly, heavily weighted oil stocks edged lower after crude oil prices retreated. BP, Europe's biggest oil company, slipped 1%, while Royal/Dutch Shell, the second biggest, fell 0.5% and Total, the third biggest, dropped 2.2%.

Banking stocks were also among the big losers. HSBC, Europe's largest bank, and BNP Paribas, France's largest bank, both lost 1.9%, while Deutsche Bank, Germany's biggest lender, fell 1.2%.

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