[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets declined on weak commodities and energy prices and a fall in global markets. Volkswagen fell nearly 10% but Porsche rose after broker recommendation. RWE disposes of more shares in American Water and raises $650 million. Allianz declined 2% after first half net dropped 29.6%.[/R]

Weak global markets and commodities prices dragged stocks in Europe.

In London FTSE 100 Index closed lower 68.96 or 1.46% to 4,645.01, in Paris CAC 40 Index decreased 75.58 or 2.16% to close at 3,419.69 and in Frankfurt DAX index lower 107.50 or 2.02% to close at 5,201.61. In Zurich trading SMI decreased 101.60 or 1.70% to close at 5,883.70.

Volkswagen continued to fall for the second day after the company announced the purchase of Porsche SE.

Gainers & Losers

Allianz SE slumped 2.6% to €74.18 after the German insurance group said first-half revenues rose 2.9% to €49.9 billion from €48.9 billion a year ago. Net profit in the first-half fell 29.6% to €1.9 billion or €4.17 per diluted share compared to net profit of €2.7 billion or €5.85 per share a year ago.

Celesio AG added 0.2% to €19.54.

Continental AG dropped 2.8% to €22.65 after the automotive industry supplier will is looking at three candidates for Chairman, according to Financial Times Deutschland report.

Cie. de Saint-Gobain SA dropped 4.1% to €28.65 after the global markets selloff.
Demag Cranes AG dropped 6% to €19.85 after Euro magazine quoted cited chief executive comments that recovery in the near term is not likely.

Electricite de Strasbourg SA slipped 0.9% to €34.44 after the Europe’s power producer passed on higher tariff of 1.9% to customers.

IKB Deutsche Industriebank AG declined 1.6% to €0.60 after the German based bank received approval for the state guarantee from Germany by the European regulators.

PSA Peugeot Citroen S.A the manufacturer of passenger cars and light commercial vehicles declined 0.8% to €20.40.

RWE AG slid 0.9% to €58.59 after the company divested 35 million additional shares in the American Water after selling addition to 15.4 million in June. The latest sale will reduce the holding in the water company to 26.5% and raise $650 million.

American Water completed its public offering in the U.S. in April 2008.

Separately, E.On dropped 2.4% to €26.89.

Sanofi-Aventis SA the pharmaceutical group fell 1.8% to €44.74.

Siemens AG engaged in electronics and electrical engineering fell 1.4% to €56.28.

Volkswagen AG plunged 9.9% to €171.82 and Porsche gained 3.1% to €49.98. Goldman Sachs raised its price target for Porsche to €94 from €62 and Bloomberg cited an analyst at BHF Bank AG with the VW price decline to €80.

Europe Markets Review

In London FTSE 100 Index closed lower 68.96 or 1.46% to 4,645.01, in Paris CAC 40 Index decreased 75.58 or 2.16% to close at 3,419.69 and in Frankfurt DAX index lower 107.50 or 2.02% to close at 5,201.61. In Zurich trading SMI decreased 101.60 or 1.70% to close at 5,883.70.