(RTTNews) - The European markets fell on Tuesday, as banking stocks slipped after prominent U.S. banking analyst Meredith Whitney downgraded Goldman Sachs and pharmaceutical stocks lost ground after U.S. healthcare giant Johnson & Johnson reported weaker-than-expected quarterly sales.

The markets came under further pressure after a survey showed that German investor confidence dropped in October, signaling a slow recovery for the largest Eurozone economy. The Mannheim-based Centre for European Economic Reserach or the ZEW said its monthly economic sentiment indicator declined 1.7 points to 56 from 57.7 in September. The index fell for the first time in three months. Economists expected a reading of 58.8.

Crude for November delivery rose $0.54 to $73.81 on the New York Mercantile Exchange, by the time the European markets closed, as the dollar weakened against other major currencies.

The FTSEurofirst 300 index of pan-European blue chips closed 0.99% lower at 995.42 points, while the narrower DJ Stoxx 50 index fell 0.99% to 2,432.57 points.

Around Europe, the U.K.’s FTSE 100 index fell 1.08% to 5,154.15, while France’s CAC 40 index slipped 1.15% to 3,801.39 and Germany’s DAX index dropped 1.19% to 5,714.31.

Banking stocks declined after Whitney downgraded Goldman Sachs to “neutral” from “buy”. HSBC, Europe’s largest bank, fell 1.9%, while Royal Bank of Scotland, Britain’s second largest bank, slipped 2.4% and Barclays, the third biggest British lender, dropped 3.4%. Societe Generale, France’s second largest bank, lost 3.3%.

Lloyds Banking Group, Britain’s biggest mortgage lender, slid 2.1% after a person familiar with the matter said the lender would have to pay as much as �2 billion to end its participation in the U.K.’s Asset Protection Scheme.

Pharmaceutical stocks edged lower after Johnson & Johnson, the world’s largest healthcare products company, reported third quarter sales that missed analysts’ estimate. GlaxoSmithKline, Europe’s biggest drugmaker, and AstraZeneca, Britain’s third biggest drugmaker, both fell 1.1%, while Swiss drugmaker Novartis slipped 1.3%.

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Posted in Categories: Eurozone, Releases, Stocks, Switzerland, UK, USA.

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