4:30PM New York, 10:30PM Frankfurt, 6:30AM Sydney– European market averages closed lower on economic slowdown worries. Retailers and financials led the decliners.

Global Markets

European markets closed sharply lower across the region as investors worried that corporate profits are on the decline and struggle to get a handle on the financial sector losses. Carrefour SA plunged 9% after it reported second quarter sales rise of 6.0% and 6.7% increase excluding currency movement to 23.7 billion euros. Same store sales at locations in France declined 5.5% excluding fuel and 2.4% including fuel. The company will allocate 200 million euros to accelerate its growth in Brazil and slow its remodeling plans in France. Other retailers declined after Goldman Sachs placed UK based Kingfisher and Burberry on sell list.

Wienerberger dropped 20% or 5.10 euros to 17.68 euros after it estimated a decline in operating profit of 10% in the first half on lower sales in North America. The largest brick and clay tile maker reported 4% decline in revenue in the second quarter after 13% rise in revenue in the first quarter a year ago. The Vienna, Austria based company expects Bulgaria, Romania and Russia to drive sales in the rest of the year and sales in Poland are expected at elevated level.

Dow Chemical agreed to pay 74% premium to acquire specialty chemical maker Rohm & Haas valued at $15.3 billion. Berkshire Hathaway will invest $3 billion and Kuwait Investment Authority will purchase $1 billion of convertible preferred securities. The rest of the deal will be funded with debt arranged by Merrill, Citigroup and Morgan Stanley. Rohm & Haas will operate as an independent division with sale of $13 billion after the merger.

U.S. market averages scaled higher on the back of deal between two large chemical companies. Financial stocks declined again on comments from former Fed President Poole that questioned financial health of two government chartered agencies Fannie and Freddie. Freddie Mac plunged 21% and Fannie plummeted 14%. Lehman Brothers lost 14% to 83% loss from its peak in 2005.

UK home prices fell 6.1% in June from a year ago and fell 2% from May. Home prices declined to 15-year low on tighter credit, falling disposable income and stagnant wages. Separately, FTSE 100 index dropped 2.2% as investors worried that record fuel prices and falling home values will drag economy in recession. In addition, the Bank of England left its key lending rate unchanged at 5%. Retailers fell after Goldman Sachs lowered outlook on leading retailers.

Japan wholesale prices rose at a faster pace in June than in May on rising fuel and energy prices. The price index rose 5.6% in the month. The index rose sharpest in nearly three decades. Tokyo stocks rose marginally after BNP Paribas SA agreed to purchase 30 billion yen convertible bonds from realtor Urban Corp. The deal lifted the real estate developers. Financial stocks rebounded after speculators returned to the sector.

North American Markets indexes

Dow Jones Industrial Average increased 81.58 or 0.73% to a close of 11,229.02, S&P 500 closed up 8.70 or 0.71% to 1,253.39, and Nasdaq Composite Index increased 22.96 or 1.03% to close at 2,257.85. In Toronto TSX Composite closed up 133.04 or 0.98% to 13,743.88.

Of the 30 stocks in Dow Jones Industrial Average 18 stocks gained and 12 declined.

AIG led the decliners in the Dow Jones Index with a fall of 8.2% followed by decreases in General Motors of 6.7%, in Home Depot of 2.41%, in Coca-Cola of 1.7%, in Hewlett Packard of 1.7% and in McDonalds Corp of 1.4%.

Alcoa led the gainers in the Dow Jones Index with a rise of 9.5% followed by increases in Intel Corp of 3.7%, in IBM of 2.2%, in Chevron Corp of 1.9% and in AT&T Inc of 1.81%.

Of the stocks in S&P 500 index, 281 increased, 216 declined and 3 was unchanged. Of the index stocks 42 stocks rose more than 3% and 54 fell more than 3%.

MGIC Investment Corp led the decliners in the S&P 500 index with a loss of 23% followed by declines in Freddie Mac of 21.1%, in Lehman Brothers of 14.4%, in Fannie Mae of 14.1%, in WaMu Inc of 10.5% and in XL Capital Ltd of 10.4%.

Rohm & Haas led the gainers in the S&P 500 index with a rise of 64.8% followed by gains in Alcoa Inc of 9.3%, in Southwestern Energy of 7.21%, in Chesapeake Energy of 6.5%, in Fifth Third Bancorp of 6.4% and in Range Resources of 5.7%.

South American Markets Indexes

Venezuela led the decliners in the Latin American markets with a loss of 1.6% followed by losses in Mexico of 0.8%, in Argentina of 0.39%, in Colombia of 0.36%.

Peru led the gainers in the region with a rise of 1.6% followed by increases in Brazil of 1.20% and in Mexico of 0.59% and 0.46% in Jamaica in the Caribbean region.

European Markets Indexes

In London FTSE 100 Index closed lower 122.80 or 2.22% to 5,406.80, in Paris CAC 40 Index decreased 108.10 or 2.49% to close at 4,231.56 and in Frankfurt DAX index lower 81.46 or 1.28% to close at 6,305.00. In Zurich trading SMI decreased 118.37 or 1.71% to close at 6,803.07.