(RTTNews) - The European markets fell for the third day on Monday, as banking and insurance stocks slipped on speculation that financial companies will need to raise more capital.

Crude for December delivery fell $1.80 to $78.70 a barrel on the New York Mercantile Exchange, by the time the European markets closed, as the U.S. dollar turned higher against other currencies.

The FTSEurofirst 300 index of pan-European blue chips closed 1.12% lower at 997.61 points, while the narrower DJ Stoxx 50 index fell 1.17% to 2,445.43 points.

Around Europe, the U.K.’s FTSE 100 index fell 0.97% to 5,191.74, while France’s CAC 40 index slipped 1.68% to 3,744.45 and Germany’s DAX index dropped 1.71% to 5,642.16.

Dutch financial services firm ING tumbled 18% after the company said it will split itself in two and launch a ?7.5 billion rights issue.

Lloyds Banking Group, Britain’s biggest mortgage lender, dropped 7.2% after a person familiar with the matter said the company will ask shareholders to buy �11.5 billion of stock through a rights offer and present plans to convert a further �11 billion of subordinated debt into equity.

Royal Bank of Scotland after the Times said the lender may receive billions of pounds from the U.K. government to make up for a cut in the level of potentially toxic assets that RBS will protect under a state insurance program.

Allianz, Europe’s biggest insurer, dropped 4.4%, while BNP Paribas, France’s largest bank, slipped 3.7% and Credit Suisse, Switzerland’s second largest bank, fell 2.6%.

On the other hand, Electrolux, the world’s second biggest household appliance maker, climbed 6.7% after the company reported third quarter profit that increased from last year and beat analysts’ estimate.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

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

Subscribe by RSS Subscribe by Email