European Markets Fell Again, Investors Awaiting FOMC Minutes

(RTTNews) - The European markets extended their losses from the previous trading session on Tuesday. Concerns over potential tapering of stimulus measures by the Federal Reserve continued to dominate the trading session. Investors played it cautious on Tuesday and were reluctant to take positions ahead of the release of the FOMC minutes.

Investors are eagerly anticipating the minutes of the Federal Open Market Committee's two-day meeting held on July 30 and 31, which are slated to be released on Wednesday. The minutes are expected to give further hints regarding the Fed's further course of action on stimulus tapering.

The Euro Stoxx 50 index of eurozone bluechip stocks declined by 1.22 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.62 percent.

The DAX of Germany dropped by 0.79 percent and the CAC 40 of France fell by 1.35 percent. The FTSE 100 of the U.K. decreased by 0.19 percent and the SMI of Switzerland lost 0.04 percent.

In Frankfurt, Commerzbank and Deutsche Bank declined by 3.37 percent and 1.97 percent, respectively.

Salzgitter fell by 4.16 percent, after Morgan Stanley downgraded it to "Underweight" from "Equal weight."

Deutsche Wohnen dropped by 1.35 percent. The firm said it would make a voluntary public takeover offer to all shareholders of GSW Immobilien AG domiciled in Berlin to acquire their no-par value bearer shares in GSW Immobilien AG. GSW surged by 6.26 percent.

In Paris, Societe Generale decreased by 2.84 percent. BNP Paribas and Credit Agricole lost 1.49 percent and 1.66 percent, respectively.

Morgan Stanley downgraded ArcelorMittal to ''Underweight'' from ''Equal weight.'' The stock fell by 3.61 percent.

In London, John Wood Group sank by 7.97 percent, after it reported first-half results.

Building materials group CRH reported a loss for the first half, as sales fell amid continued weakness in key European markets. The firm expects challenging trading conditions in Europe to remain for the remainder of 2013. The stock fell by 2.92 percent.

BHP Billiton dropped by 1.66 percent, after the miner reported a sharp decline in annual profit.

Glencore Xstrata declined by 1.59 percent. The firm reported a loss for the first half, reflecting mainly goodwill impairments related to Xstrata acquisition.

Ladbrokes climbed by 3.13 percent, after Citigroup upgraded the stock to ''Buy'' from ''Neutral.''

Dental implants maker Straumann surged by 8.50 percent in Zurich. The firm announced that it has received FDA breakthrough therapy designation for BYM338, a novel, fully human monoclonal antibody developed to treat pathological muscle loss and weakness.

Eurozone's construction sector output increased for a third consecutive month in June, the latest data from Eurostat revealed Tuesday. Production rose 0.7 percent month-on-month in June following a 0.5 percent increase in May and a 1.3 percent growth in April.

Germany's producer price inflation weakened in July, defying economists' forecast for an increase, latest data showed Tuesday. The producer price index moved up 0.5 percent on an annual basis in July, following the previous month's 0.6 percent gain, the Federal Statistical Office said. Economists had forecast growth to accelerate to 0.7 percent.

A leading indicator of German economic activity increased for a second consecutive month in June, suggesting that the economy will likely sustain the current growth momentum in the coming months, the Conference Board said in a report on Tuesday. The leading economic indicator (LEI) increased 0.2 percent month-on-month to 105.4 in June. This followed a 0.4 percent increase in May and a 0.2 percent fall in April.

Germany's employment increased by 0.6 percent year-on-year in the second quarter, the same rate as seen in the first quarter, Destatis reported Tuesday. The number of persons in employment was up by 242,000 from the last year. Compared to the first quarter, employment surged 377,000 or 0.9 percent, as a result of the spring upturn in the second quarter of 2013. After adjusting for usual seasonal fluctuations, employment increased only by 52,000, it said.

Mortgage lending in the United Kingdom increased sharply in July, rising to the highest level in nearly five years, data released by the Council of Mortgage Lenders (CML) showed Tuesday. The gross value of mortgage loans disbursed in July increased 12 percent sequentially to GBP16.6 billion. Compared to July 2012, total mortgage lending climbed 29 percent. The value has now reached the highest level since October 2008, when it stood at GBP18.6 billion.