MW: European stocks follow U.S., Asian markets lower
Banks under pressure; Kerry Group up after lifting outlook
By Simon Kennedy, MarketWatch
LONDON (MarketWatch) -- European stock markets fell sharply Tuesday following a weak session on Wall Street and heavy overnight losses in Tokyo, though French retail giant Carrefour and U.K. packaging company Bunzl bucked the downward trend after reporting strong earnings.
The Stoxx Europe 600 index (ST:SXXP 249.15, -2.01, -0.80%) fell 1.1%, or 2.85 points, to 248.31, with banks and mining stocks posting some of the biggest losses.
Allied Irish Banks (IE:AIB 0.74, -0.03, -3.90%) dropped 6.4% in Dublin and Barclays (UK:BARC 296.85, -7.10, -2.34%) (BCS 18.47, -0.53, -2.79%) fell 2.9% in London.
Among the main regional markets, the French CAC 40 index (FR:PX1 3,461, -25.92, -0.74%) declined 1.1% to 3,448.16 and the German DAX 30 index (DX:DAX 5,873, -38.99, -0.66%) dropped 0.9% to 5,859.18.
The U.K.'s benchmark FTSE 100 Index (UK:UKX 5,163, -38.14, -0.73%) was down 1.1% at 5,144.55 after an extended holiday weekend.
Economic worries hit Wall Street on Monday as investors prepared for a busy week for economic announcements, which will culminate with a crucial payrolls report on Friday. See Market Snapshot.
Asian shares also lost ground, with Tokyo's Nikkei 225 Average slumping 3.6% amid continued worries about the strength of the yen and doubts over whether the country's finance minister would back up strong words on the currency with action. See story on the yen's appreciation.
Among European stocks in focus Tuesday, share of French retailer Carrefour (FR:CA 36.01, -0.11, -0.29%) recovered from early losses to trade up 0.9% in Paris.
The company said it swung to a profit of 82 million euros ($104 million) in the first half of the year from a loss of €58 million a year earlier and reaffirmed its performance targets for 2010.
Elsewhere in Paris, Hermes International (FR:RMS 144.05, -2.90, -1.97%) dropped 1.2% after reporting its first-half results.
Bunzl (UK:BNZL 710.00, +8.00, +1.14%) was another gainer, adding 1% in London after the packaging and distribution company lifted its dividend and reported a 6.9% rise in net profit, helped by growth in its North American operations.
Shares in Greek lender Alpha Bank fell 2.2% as losses on bad loans continued to increase and profit fell 62%.
Irish food company Kerry Group (IE:KRZ 25.17, +0.57, +2.32%) rose 3.1% in Dublin after saying it expects to beat its previous earnings guidance thanks to a strong start to the year.
