European Stocks Lower As Banking Shares Dip

July 29, 2008 12:04 p.m. EST

London, UK (AHN) - European markets were lower on concerns about the banking sector, reflecting a similar mood expressed by Asian traders.

The pan-European Dow Jones Stoxx 600 dropped 0.4 percent to 277 as banking stocks in Switzerland, the UK, France and Germany fell. In New York, Merrill Lynch said it would sell $8.5 billion of stock to raise additional capital.

In London, the UK FTSE 100 rose nearly a half-point to 5,332 with news that energy company BP posted a 28 percent increase in second-quarter profits and British Airways rose on talk of a merger with Iberia. Barclays was among European banks hit by the downturn, falling 6.8 percent.

France's CAC 40 lost 1 percent to 4,283 as the CEO and Chairman of Paris-based Alcatel-Lucent announced plans to leave their posts. Investment firm Societe Generale shed 4.7 percent.

In Germany, the DAX 30 fell a half-point to 6,319 as Deutsche Bank slipped 3 percent.