(RTTNews) - The European markets fell on Wednesday, as SAP, ArcelorMittal and Banco Santander reported disappointing earnings and commodity stocks slipped on weaker metals and crude oil prices.

The markets came under further pressure after the U.S. Commerce Department said that new home sales fell 3.6% to an annual rate of 402,000 in September from the revised August rate of 417,000. Economists had expected sales to increase to 440,000 from the 429,000 originally reported for August.

In a separate report, the U.S. Commerce Department said that durable goods orders rose 1.0% in September following a 2.6% decrease in August. The increase in orders came in line with economist estimates. Excluding the increase in orders for transportation equipment, durable goods orders still rose 0.9% in September compared to a 0.4% decrease in August. Economists had been expecting ex-transportation orders to increase by 0.7%.

Crude for December delivery fell $2.00 to $77.55 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 1.94% lower at 980.23 points, while the narrower DJ Stoxx 50 index fell 1.47% to 2,426.38 points.

Around Europe, the U.K.’s FTSE 100 index slipped 2.32% to 5,080.42, while France’s CAC 40 index fell 2.14% to 3,663.78 and Germany’s DAX index dropped 2.46% to 5,496.27.

SAP, world’s biggest maker of business management software, dropped 7.7% after the company reported third quarter earnings that missed analysts’ estimate and lowered its full year software sales forecast.

ArcelorMittal, the world’s biggest steelmaker, slipped 4.9% after the company reported a 76% drop in third quarter profit, as sales more than halved. ThyssenKrupp, Germany’s biggest steelmaker, lost 6.1%.

Banco Santander, Spain’s largest bank, fell 3.9% after the company reported a 2.8% decline in nine-month net profit.

Prudential, Britain’s biggest insurer, tumbled 9.8% after the company said its nine-month sales fell 9% from a year earlier.

BG Group, Britain’s third largest gas producer, slid 3.3% after the company reported a 44% drop in third quarter profit.

Heavily weighted oil stocks lost ground after crude oil prices dropped. BP, Europe’s biggest oil company, slipped 1.7%, while Royal/Dutch Shell, the second biggest, fell 1.2% and Total, the third biggest, dipped 1.5%.

Similarly, mining stocks slipped after copper, nickel and tin prices retreated in London. BHP Billiton, the world’s biggest miner, fell 3.1%, while Anglo American, the second biggest, slid 4% and Rio Tinto, the third biggest, dropped 6.9%. Copper miner Antofagasta lost 5%.

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

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