IPR leads gains on the 100

European equities markets were lower Tuesday as banks and miners declined after new data from the US Commerce Department showed that wholesale inventories in the United States dropped by 1.7 percent in June, to their lowest in nearly two years.

The new figures put the economic recovery in doubt.

The FTSE 100 was 1.08 percent lower to 4,671.34 in London, while the FTSE 250 dropped 1.41 percent to 8,302.66.

International Power (LSE: IPR) led gainers on the 100 and a mixed utilities sector as it added 7.25 percent, while Lloyds Banking Group (LSE: LLOY) dropped 7.05 percent for the worst performance of the session on the index as the UK banking sector was down.

Miners were also lower, led by Ferrexpo (LSE: FXPO), which was 6.02 percent lower on the 250 while Kazakhmys (LSE: KAZ) dropped 6.01 percent on the 100.

The FTSE Eurofirst 300 was down 1.34 percent to 931.95 while the IBEX fell 0.83 percent to 10,831.9, the CAC-40 was 1.38 percent lower to 3,456.18 and the Dax dropped 2.44 percent to 5,285.81.

There were only two winners on the CAC-40, led by food processor Danone (Euronext: BN) with a gain of 0.89 percent, while Alcatel-Lucent (Euronext: ALU; NYSE: ALU; TYO: 6687) turned in the worst performance on the index as it dropped 4.93 percent.

There were no winners on the Dax, where banks declined as Deutsche Bank (FWB: DBK; NYSE: DB) fell 4.65 percent and Commerzbank (FWB: CBK) was down 4.45 percent.

Travel-related shares fell as Air France-KLM (Euronext: AF; NYSE: AKH) was down 3.84 percent and hotels operator Accor (Euronext: AC) dropped 3.11 percent.

Markets in the Asia-Pacific region were higher on the session, although most gains were modest.

In Tokyo, the Nikkei added 0.58 percent to 10,585.46 while the Topix index was 0.44 percent higher to 973.51 and the Mothers market gained 1.43 percent to 469.2.

An earthquake in Japan helped shares in the construction sector see gains on speculation that the magnitude 6.5 temblor caused enough damage that construction companies will see revenues grow on reconstruction efforts.

Nissei Build Kogyo (TYO: 1916) was up 9.1 percent on the session while bridge builder P. S. Mitsubishi Construction Company (TYO: 1871) added 5.6 percent.

Insurers were also higher as two big groups turned in positive quarterly reports.

Automobile, accident, fire and marine insurer Aioi (TYO: 8761) was 4.2 percent higher after its net income quadrupled in the quarter ending in June, while Mitsui Sumitomo (TYO: 8725), which provides non-life coverage and reinsurance services gained 2 percent on fiscal first quarter profits that were up by 37 percent.

Fuji Fire & Marine Insurance (TYO: 8763), still to issue its quarterly report, was up 15 percent.

Carmakers declined on a stronger yen.

Elsewhere in the region the Kospi was up 0.2 percent to 1,579.21, the Taiex added 0.38 percent to 6,909.02, the Sensex was 0.43 percent higher to 15,074.59 and the Shanghai composite gained 0.46 percent to 3,264.73.

In Australia, meanwhile, the Sydney Ordinaries added 0.58 percent to 4,334.4 and the S&P/ASX200 was up 0.65 percent to 4,332, while the Hang Seng was 0.69 percent higher to 21,074.21 in Hong Kong and the Straits Times Index gained 1.88 percen tto 2,597.3.

In midday trade in New York the Dow Jones Industrial Average was 1.13 percent lower to 9,232, while the Nasdaq Composite and the S&P 500 had each dropped 1.4 percent, to 1,964.28 and 993.02 respectively.

Story link: IPR leads gains on the 100