European close: US data deals fresh blow

LONDON (ShareCast) - European indices saw the sort of one-day declines rarely witnessed since the current bull run started in March, as economic data from Europe and the US formed a pincer movement on equities.

European stocks were already looking vulnerable in the morning session after unemployment in the 16 country eurozone increased to 9.7% in September, the highest rate since January 1999, before disappointing US consumer spending figures dealt a second major blow in the afternoon session.

US consumer spending fell for the first time in five months in September, dipping 0.5% after rising 1.4% in August. The slide coincided with the ending of the US administration's car scrappage scheme, which prompted a collapse in car purchases.

Energy stocks were lower after crude prices slipped below $80 a barrel. Among the fallers were Total and Eni.

Miners were similarly out of favour with the likes of Kazakhmys, Xstrata, Lonmin, ENRC, Antofagasta and Vedanta all suffering reverses of 5% or more.

French telecommunications equipment giant Alcatel-Lucent slumped after it posted a wider third-quarter net loss of €182m compared with a loss of €40m last year.

French drug maker Sanofi-Aventis reported a 15.9% rise in third-quarter net income to €2.2bn and lifted its full-year adjusted earnings per share guidance.

Norwegian manufacturer of videoconferencing systems, Tandberg, came under selling pressure on rumours that US networking equipment giant Cisco may walk away rather than accede to the wishes of the Norwegian company's major shareholders, who want Cisco to beef up its $3.1bn offer for the company.

The Dax ended 172 points lower in Frankfurt at 5,414, while the Cac was 106 points lower at 3,607. In comparison, the Swiss market performed well, losing only 65 points at 6,285.

CAC 40 - Risers None

CAC 40 - Fallers Alcatel-Lucent (ALU) € 2.57 -10.61% Saint Gobain (SGO) € 33.31 -6.72% Bouygues (EN) € 32.15 -6.13% ArcelorMittal SA (MT) € 22.98 -5.08% Technip (TEC) € 42.83 -4.61% Lafarge (LG) € 55.45 -4.40% BNP Paribas (BNP) € 51.45 -4.26% Air Liquide (AI) € 73.40 -4.05% France Telecom (FTE) € 16.86 -3.77% Vinci (DG) € 35.63 -3.64%