European Stocks Tumble On Gloomy Economic Outlook

(RTTNews) - European stocks tumbled as fears about the euro zone economy resurfaced after a sobering assessment from the European Commission.

The European Commission today lowered the euro area growth forecast for 2015 to 1.1 percent from 1.7 percent predicted in May. The outlook for this year has been cut to 0.8 percent from 1.2 percent.

European Commission reduced inflation projection for 2015 to 0.8 percent from 1.2 percent, and for the current year it has been trimmed to 0.5 percent from 0.8 percent earlier.

Markets last week cheered the Bank of Japan's unexpected stimulus, thinking the European Central Bank would be pressured to follow suit.

However, ECB officials have been stubbornly resisting full-scale quantitative easing, and have offered no indication of moving in that direction so far this week.

The Euro Stoxx 50 index of eurozone bluechip stocks dropped 1.56 percent and is down 2.4 percent year-to-date.

The German DAX slid 0.92 percent, the French CAC 40 fell 1.52 percent and the FTSE 100 index of the U.K. dropped 0.52 percent.

Big banks struggled badly, with Commerzbank dropping 3.3 percent.

In Frankfurt, BMW lost 2.2 percent after the car maker failed to match the growth rate of Audi and Mercedes-Benz in the third quarter.

Hugo Boss declined 5.2 percent, after the clothing maker lowered its fiscal year growth forecast, citing increasing challenges.

Securitas AB jumped 9.3 percent to a seven-year high after reporting third-quarter net income that beat estimates.

Continental added 0.5 percent. The auto parts maker reported increased third-quarter earnings, helped by higher sales of tires and interior components.

In Paris, Technip lost 3.8 percent. The oilfield services provider said it has entered into a contract to supply its proprietary ethylene technology and process design package for a grassroots ethane cracker.

Loreal slipped 1.25 percent. The world's largest cosmetic maker said its third-quarter sales rose 2 percent to 5.39 billion euros, and advanced 2.3 percent on a like-for-like basis.

In London, Tullow Oil, Royal Dutch Shell, BP and BG Group were hammered as crude prices slipped to 3-year lows.

Imperial Tobacco gained 4.2 percent after reporting increased full year profit.

Associated British Foods rose 5.1 after saying sales rose sharply in the most recent period.

Royal DSM shares rallied Amsterdam. The company posted quarterly results that beat estimates.