European Market Updates
11/3/2009 2:41 PM ET
(RTTNews) -
The European markets fell on Tuesday after UBS reported its fourth consecutive quarterly loss and Royal Bank of Scotland said it would join the government's asset protection scheme.
In economic news, the U.S. Commerce Department said in its report that factory orders increased by 0.9% in September following an unrevised 0.8% decrease in August. The increase in orders came in slightly above economist estimates for an increase of about 0.8%.
The European Commission said it expects eurozone to grow in the second half of 2009 on strengthening global growth outlook. Also, the Brussels-based commission raised its economic forecast for 2010.
Crude for December delivery rose $0.63 to $78.76 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 1.16% lower at 968.93 points, while the narrower DJ Stoxx 50 index fell 1.38% to 2,387.99 points.
Around Europe, the U.K.'s FTSE 100 index fell 1.32% to 5,037.21, while France's CAC 40 index dropped 1.52% to 3,584.25 and Germany's DAX index slipped 1.43% to 5,353.35.
UBS, Switzerland's largest bank, dropped 5.8% after the company reported its fourth consecutive quarterly loss, hurt by higher-than-expected accounting charges.
BMW, the world's largest maker of luxury cars, slid 6.3% after the company reported a 74% drop in third quarter profit.
Royal Bank of Scotland, Britain's biggest government-controlled bank, slipped 7% after the company said it has reached agreement with the UK Government on key terms of its participation in the asset protection scheme on revised terms.
Some other banks also edged lower. HSBC, Europe's largest bank, fell 3.1%, while Deutsche Bank, Germany's largest bank, dipped 4.2% and BNP Paribas, France's biggest lender, lost 4.3%.
However, Lloyds Banking Group, Britain's biggest mortgage lender, rose 2.7% on relief that a record £13.5 billion rights issue would mean it can stay out of the government scheme.
Swiss RE, the world's second largest reinsurer, climbed 6.4% after the company reported an unexpected third quarter profit.
Metro, Germany's largest retailer, surged up 4.2% after the company reported third quarter operating earnings that beat some analysts' estimates.
by RTT Staff Writer
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