[R]6:30 AM Europe declined on commodity pressures.[/R]
European markets were lower by mid morning on Tuesday, reversing earlier advances, as investors came under pressure by commodity stocks to sell oil, mining and metal shares. Austria’s OMV was the biggest loser, as it stock lost 8.5%, accompanied by another company in the red, Norway’s Statoil fell down 0.8%. Luxury goods stocks also sank on consumer sentiment over energy costs. French perfume maker, Hermes International, was off 4.1% and the Swiss watchmaker, Richemont, dropped 2.1%. EADS, producer of Airbus, reported strong earnings, up 26%, beating analyst expectations despite a strong euro, hampering export.

Oil continued its fall on Tuesday morning on worries that high energy costs may slow down economic growth. Crude oil was traded 14 cents lower at $69.27 a barrel by 0719 GMT, London Brent fell 25 cents to $69.42. Gold in London was fixed at a recommended price of $681.00, down from $683.60 late Monday on NYME. The dollar was down against the euro. The euro bought $1.2807, down from $1.2809 late Monday in New York, the greenback was slightly up against the yen, buying 110.30 yen, up from 110.20 yen on Monday, and off from the British pound. One British pound was traded at $1.8803, up from $1.8793.