European stocks declined, paced by chemical makers including Bayer AG and carmakers such as DaimlerChrysler AG, as crude oil futures traded near a record high in New York. Nokia Oyj, the world's biggest mobile-phone maker, fell after saying third-quarter profit dropped 20 percent because the company cut prices to win back market share.
``The longer the oil price stays above $50, the higher the risk that we will be put into recession in the next six to nine months,'' said Rob Sellar, a fund manager at Aberdeen Asset Management in London, which oversees the equivalent of $3.6 billion. The Dow Jones Stoxx 50 Index dropped 0.4 percent to 2705.47 as of 12:26 p.m. The Stoxx 600 declined 0.4 percent, as 15 of its 18 industry groups fell. The Euro Stoxx 50, a measure for the countries that use the euro, shed 0.5 percent. Benchmark indexes fell in all of the 18 Western European markets, except Greece and Iceland. France's CAC 40 Index declined 0.5 percent. Germany's DAX Index dropped 0.8 percent. The U.K.'s FTSE 100 Index slipped 0.1 percent. December futures on the Euro Stoxx 50 gained 0.3 percent. Crude oil futures rose for a second day, gaining as much as 1 percent to $54.20 in after-hours electronic trading on the New York Mercantile Exchange. This added to yesterday's gain of 2.2 percent, amid speculation a report today may show U.S. inventories are lower than a year ago before demand increases in the winter. The contract last traded at $54.08. Bayer, Germany's second-biggest chemicals maker, dropped 2.3 percent to 22.03 euros. DaimlerChrysler AG, the world's fifth- largest carmaker, fell 1.2 percent to 33.16 euros.
Nokia
Nokia, the world's biggest handset maker, shed 0.9 percent to 11.31 euros. Net income fell to 660 million euros ($816 million) from 823 million euros a year earlier, the Espoo, Finland-based company said in a Helsinki exchange statement. Sales rose to 6.94 billion euros from 6.87 billion euros a year earlier. The company was expected to say profit slid 29 percent to 584 million euros ($724 million), according to the average estimate of 10 analysts surveyed by Bloomberg News. Ericsson AB, the world's largest maker of cellular-phone networks, fell 1.7 percent to 23.1 Swedish kronor after adding as much as 0.4 percent. The shares fell even as Sony Ericsson Mobile Communications Ltd., the mobile-phone venture owned by Sony Corp. and Ericsson, reported a fifth straight quarterly profit as more people picked its camera phones.
Carmakers Fall
Renault SA, France's second-biggest carmaker, fell 0.8 percent to 65.45 euros. Fiat SpA, Italy's largest, fell 1.2 percent to 5.65 euros. General Motors Corp., the world's biggest carmaker, today said it will cut as many as 12,000 jobs in Europe after $3 billion in losses in the region in the past four years. The carmaker in June said it expected the fifth straight annual loss in Europe this year. Western European car sales fell for a third month in a row in September. Sales dropped 0.6 percent to 1.35 million vehicles from 1.36 million units a year earlier, the European Automobile Manufacturers Association said yesterday.
Philips, LVMH
Royal Philips Electronics NV, Europe's largest consumer electronics maker, shed 1.5 percent to 18.18 euros, the lowest in two months. Chief Executive Officer Gerard Kleisterlee said ``a few slow quarters'' ahead will test his strategy of reducing swings in profit by expanding in medical equipment and appliances. LVMH Moet Hennessy Louis Vuitton SA, the world's largest luxury-goods maker, shed 1.7 percent to 54.95 euros, falling for a fourth day after posting a decline in third-quarter sales. Sales were 3.08 billion euros ($3.8 billion), from 2.93 million euros a year earlier, Bloomberg calculations show. Analysts predicted sales of 3.09 billion euros.
Roche Holding AG, the world's biggest maker of cancer medicines, shed 1.5 percent to 125.70 Swiss francs, its lowest in a month. The company said third-quarter sales from continuing operations rose 8.9 percent to 7.37 billion francs, less than the 7.6 billion-franc median estimate of nine analysts surveyed by Bloomberg News. Groupe Danone, the world's largest yogurt maker, climbed 3.4 percent to 64.70 euros, the biggest gain in more than a year. The company said third-quarter sales rose 2.3 percent from the year- earlier period to 3.57 billion euros ($4.41 billion) as U.S. demand for its Carb Control and Actimel products made up for stagnant sales of branded foods in Europe. Eight analysts surveyed by Bloomberg predicted revenue of 3.53 billion euros, their median estimate showed.
Alitalia
Alitalia SpA, Italy's largest airline, shed 5.3 percent to 24.8 euro cents after saying its first-half loss was more than double the figure originally announced as it set aside money to cover the cost of job cuts. The company restated the loss to 620 million euros compared with a loss of 315 million euros in the year-earlier period, the carrier said. On July 30, Alitalia said its first-half net loss was 330 million euros because of strikes in the first quarter. HVB Group, Germany's second-biggest bank, lost 1.7 percent to 15.52 euros, the biggest decline in three weeks. Chief Executive Officer Dieter Rampl said he's ``cautiously optimistic'' for the bank's 2004 results even though third- quarter trading was ``difficult.'' Shares in Marconi Corp., a U.K. maker of phone equipment, had a record slump after it reported second-quarter revenue excluding assets sold fell short of some analysts' forecasts. The shares fell 14 percent to 506.5 pence, the biggest drop since May 2003, when shares in the company started trading again after it handed control to creditors. The U.S. Energy Department may say oil stockpiles last week were 5 percent below their year-earlier level, according to a Bloomberg survey of analysts, as Hurricane Ivan slashed output in the Gulf of Mexico. ///www.bloomberg.com