The European markets fell on Wednesday, as banking stocks slipped following disappointing quarterly results from Spanish lender BBVA and on concern about Greece's fiscal deficit.
In economic news, the U.S. Commerce Department said in its report that new home sales fell 7.6% to an annual rate of 342,000 in December from an upwardly revised November rate of 370,000. Economists had expected sales to edge up to 366,000 from the 355,000 originally reported for the previous month.
The U.S. Federal Reserve began its second day of policy meetings Wednesday, and experts expect that its rate setting committee won't announce any policy changes in light of Thursday's Senate vote on another term for Chairman Ben Bernanke.
Meanwhile, Germany's Federal Ministry of Economics and Technology raised the country's economic growth forecast for this year, citing rising demand for German products, as the global economic recovery progresses. The ministry now forecasts 1.4% growth in German gross domestic product this year, faster than the 1.2% rise predicted in October. The economy contracted 5% in 2009.
Crude for March delivery fell $0.15 to $74.56 a barrel on the New York Mercantile Exchange, by the time the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 0.90% lower at 1,013.83 points, while the narrower DJ Stoxx 50 index fell 1.05% to 2,488.82 points.
Around Europe, the U.K.'s FTSE 100 index slipped 1.13% to 5,217.47, while France's CAC 40 index dropped 1.24% to 3,759.80 and Germany's DAX index fell 0.45% to 5,643.20.
BBVA, Spain's second largest bank, slid 6.4% after the company reported fourth quarter profit that fell 94% from last year and missed analysts' estimate.
Banco Santander, Spain's largest bank, lost 5.1%, HSBC, Europe's largest bank, fell 1.6% and BNP Paribas, France's largest bank, 1.80%.
Shares of Greek lenders slipped after the European Commission said the country has not done enough to to rein in its fiscal deficit. National Bank of Greece, the country's biggest lender, dropped 5.6%, while EFG Eurobank Ergasias, the second biggest, sank 5.4% and Alpha Bank, the third biggest, dipped 7.9%.
Lafarge, the world's biggest cement maker, slipped 4.5%, while Holcim, the second biggest, fell 4.4% and HeidelbergCement, Germany's biggest cement maker, dropped 6% after U.S. rival Cemex reported a fourth quarter loss.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.