BDEV loses 15 percent as homebuilders decline

European equities markets saw declines Wednesday on ongoing fears of further losses for banks, on gains in UK unemployment, and after crude oil prices rose on an unexpected drop in US gasoline stockpiles.

The FTSE 100 was down 1.55 percent to 5,448.6 in London, while the FTSE 250 dropped 1.96 percent to 8,109.5.

Homebuilders were lower as Barratt Developments (LSE: BDEV) was down 15.31 percent and Taylor Wimpey (LSE: TW) dropped 8.1 percent.

Banks saw losses, with many declines in the sector in the 6 percent to 7 percent range, while real estate developers, miners and most retailers were lower, led by consumer electronics retailer DSG International (LSE: DSGI) with a drop of 15.83 percent and a decline of 10.05 percent for Marks and Spencer (LSE: MKS).

The FTSE Eurofirst 300 was 2.42 percent lower to 1,179.64 while Frankfurt’s Dax fell 2.49 percent to 6,422.10, Madrid’s IBEX was down 2.51 percent to 11,695.4 and the Paris CAC-40 dropped 2.56 percent to 4,402.97.

There were only three winners on the session on the CAC-40, in the utilities and steel sectors, and just two gainers on the Dax.

Tiremaker Michelin (Euronext: ML) and Credit Agricole (Euronext: ACA) each dropped 6.8 percent to lead the CAC-40 lower, while Commerzbank (DAX: DBK) was the biggest loser on the Dax as it dropped 6.89 percent.

Asia-Pacific equities markets were lower on new data showing that Japan’s economy contracted by 0.6 percent in the second quarter as consumers spent less and there were fewer exports.

Private consumption, which comprises 55 percent of Japan’s economy, was down by 0.5 percent in the quarter.

Japan’s gross domestic product was down at an annualized rate of 2.4 percent, leaving the nation’s economy close to recession.

The new data showed that housing investment dropped 3.4 percent in the second quarter, sending the real estate sector lower as Mitsui Fudosan (TYO: 8801; NAS: MDSFF) fell 3.3 percent while Sumitomo Realty and Development (TYO: 8830) dropped 4.9 percent.

The advertising sector declined after cuts in profits targets for the full year, taking advertiser Dentsu (TYO: 4324) down 4.6 percent while Asatsu-DK (TYO: 9747) was 6.6 percent lower.

Insurers and banks also saw declines.

The Nikkei 225 was down 2.11 percent to 13,023.05 while the Topix index fell 1.96 percent to 1,246.48 and the Mothers market of small and mid-caps dropped 3.44 percent to 456.68.

Elsewhere in the region, the Taiex was down 0.02 percent to 7,292.34, the Straits Times Index fell 0.18 percent to 2,811, the Shanghai Composite was 0.44 percent lower to 2,446.3 and India’s Sensex dropped 0.78 percent to 15,093.12.

The Kospi index was 0.91 percent lower to 1,562.72 in South Korea and Hong Kong’s Hang Seng was down 1.61 percent to 21,293.32 while in Australia the Sydney Ordinaries fell 1.85 percent to 4,995.9 and the S&P/ASX200 dropped 2.02 percent to 4,951.6.

In early afternoon trade in New York, the Dow Jones Industrial Average was 1.09 percent lower to 11,515.78 while the Nasdaq Composite was down 0.44 percent to 2,419.99 and the S&P 500 dropped 0.5 percent to 1,283.2.

Disappointing quarterly reports from agricultural machinery manufacturer Deere & Co (NYSE: DE) and from retailer Macy’s (NYSE: M) helped the declines.

Deere was down on a decline in profits in its fiscal third quarter while Macy’s dropped 1.9 percent on a drop in profits and on an admission that full-year results could be below earlier forecasts.

Elsewhere in the retail sector, discount retailer Wal-Mart (NYSE: WMT) was down 2.2 percent while upscale department store Nordstrom (NYSE: JWN) dropped 5.3 percent ahead of quarterly reports, due tomorrow, and on a report from the Commerce Department that US retail sales were down 0.1 percent in July.

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