2:30PM New York – European stocks closed mixed after a string of weak earnings from banks and consumer products companies.

Earnings news in the region drove stocks and benchmark indexes. Earnings from Deutsche Bank, Sanofi-Aventis SA, AstraZeneca, Shire, Unilever and BSkyB dominated trading sentiment.

Deutsche Bank reported second quarter earnings decline of 64% to 649 million euros or 1.27 euros from 1.78 billion euros or 3.60 euros. The German bank wrote down 2.3 billion euros in mortgage assets in the quarter with a total write down of 7.3 billion euros. The closely monitored tier 1 ratio rose to 9.3% at the end of the second quarter from 9.2% at the end of the first quarter in March.

The drug maker Shire Limited reported second quarter revenue rose 35% to $776 million and loss per ADS declined to 44 cents from $9.93 a year ago. The company lifted its revenue increase guidance for the full year to 20% from its earlier forecast of mid-teen increase in sales.

Sanofi-Aventis SA reported second quarter sales increased 5.2% to 6.69 billion euros on a sharp increase in sales in markets outside Europe and the U.S. Diabetic treatment insulin product Lantus sales rose 27.2% to 576 million euros in the period.

Adjusted net income in the quarter fell 4.4% to 1.605 billion euros ad earnings per share declined 0.8% to 1.23 euros. The company estimated full year adjusted earnings per share to increase at 8% based on the constant dollar/euro rate at the end of 2007 to 1.371.

Unilever reported second quarter revenue rose 6% at constant currency rate or declined 1% at current rates to 10.374 billion euros and net profit fell 19% at current currency rate or declined 12% at constant currency rate to 978 million euros. Earnings per share in the quarter fell 12% at constant currency rate to 32 euro cents per share. Higher restructuring charges and stronger euro dragged operating profit 5% lower in the quarter.

CAC-40 Gainers & Losers

Sanofi-Aventis led the decliners in the CAC 40 index with a loss of 4.23% to $45.30 followed by losses in Dexia of 3.24% to $8.66, in Pernod Ricard of 2.83% to $56.25, in Cap Gemini of 2.83% to $40.85 and in Air France-KLM of 2.74% to $15.96.

EDF led the gainers in the CAC 40 index with a rise of 2.91% to $55.87 followed by increases in France Telecom of 2.63% to $20.30, in Unibail-Rodamco of 2.04% to $143.75, in Total of 1.15% to $49.75 and in Societe Generale of 0.61% to $59.37.

DAX Gainers & Losers

Of the 30 stocks in DAX index 16 stocks gained and 14 declined.

Deutsche Post-RG led the decliners in the Dow Jones Industrial Average with a loss of 3.48% or $0.54 to $14.96 followed by losses in Metro AG of 3.37% or $1.26 to $36.11, in BASF SE of 2.32% or $0.96 to $40.43 and in Deutsche Postbank of 2.26% or $1.05 to $45.50.

Deutsche Telekom led the gainers in the Dow Jones Industrial Average index with a rise of 2.69% or $0.29 to $11.09 followed by increases in Deutsche Boerse of 2.38% or $1.69 to $72.69, in Bayer AG of 2.17% or $1.18 to $55.64, in Hypo Real Estate of 1.92% or $0.34 to $18.04 and in RWE AG of 1.78% or $1.35 to $77.09.

Europe Markets Review

In London FTSE 100 Index closed lower 8.80 or 0.16% to 5,411.90, in Paris CAC 40 Index decreased 8.19 or 0.19% to close at 4,392.36 and in Frankfurt DAX index higher 19.44 or 0.30% to close at 6,479.56. In Zurich trading SMI increased 32.30 or 0.45% to close at 7,141.21.