1:00PM NY – 7:00PM Germany - European stocks closed lower across the region on price weakness in metals, oil and auto stocks.

A sharp decline in oil prices in European trading lowered stock prices of major oil companies. BP in London trading dropped 1.8%, Total in Paris lost 3.5% and Royal Dutch Shell lowered 1.3% at close in European trading.

The general weakness in metals and oil stocks dragged broader averages across the region led by 1.2% decline in Paris, 1.0% loss in Belgium and the U.K. Germany, Spain, and Switzerland lost 0.5%. Norway lost 2.92% on weakness in oil and gas price.

Weakness in mining stocks was seen across the region. U.K. listed Xstrata lost 4.5% and led the sector. ArcelorMittal, Rio Tinto and BHP lost ground in day’s trading as well. However the deal machine was in full swing with the impending offer from CSN, based in Brazil for UK based Corus Group Plc. CSN is likely to offer 475 pence per share of Corus, 4.4% higher than offered by India based Tata Steel Ltd. The Corus stock rose to 495 pence at close signaling that higher bid from Tata is likely.

Both Brazil and India, rich in iron ore need access to European markets and acquiring mills in the region help companies in both countries to secure market in the European region. The deal between Mittal Steel and Arcelor, earlier this year set of a frenzy of mergers in the steel industry. Mittal ultimately raised its initial offer by 50% and was forced to buy at a significant premium Brazilian unit of Arcelor. Several traders expect a bidding war between Tata and CSN to acquire Corus Group.

Chairman of Deutsche Borse said that it plans to look world-wide for its expansion and will not limit its option to building a pan-European exchange. After failing to convince the Borsa Italiana in Milan and Euronext in Paris the exchange has given up hope of forming an European champion.

11:30AM Earnings news from AnnTaylor, Starbucks, Hewlett Packard and Marvell Technology disappointed traders.

Starbucks (SBUX: chart) lost 6.6% or $2.52 to $36.92 on profit decline. In the most recently completed quarter the company reported net income decline of 5.2% to $117.3 million on revenue of $2 billion. The company profit declined for the first time since 2001 on higher operating and store opening costs.

AnnTaylor Stores (ANN: chart) lost 6.5% or $2.64 to $37.04 on lower annual earnings guidance. The company forecasted earnings for the year ending in January 2007 between $2.07 and $2.12 lower than the consensus earnings estimates of $2.16 per share. The company also reported third quarter profit of 54 cents vs 42 cents a year ago.

Marvell Technology Group (MRVL: chart) lost 2.5% or 56 cents to $19.06 on 22% rise in third quarter revenue and 9% sequential decline from the second quarter of 2007. Two analysts cut the rating on the company.

10:30AM Sensex slipped 0.5% in volatile trading on profit-taking.
The Sensex on BSE finished 76.41 points, or 0.50%, lower to 13,429.48. The market-breadth weakened continuously over the course of the trading session today. As 1871 shares declined on BSE, only 657 advanced and 63 stocks were unchanged. From the 30-Sensex stocks, 22 declined while the rest advanced. The turnover on BSE was Rs 4,472 crore, much lower than Rs 6,125.73 crore on Thursday. The turnover on NSE was Rs 8,720.45 crore, lower than Rs 10,321.46 crore on Thursday.

Economic news

The wholesale price index advanced 5.30% in 12 months to Nov. 4, higher than 5.09% the previous week due to a rise in the prices of food articles and manufactured products.

Foreign funds moving into Indian equities have increased more than $7.7 billion this year, compared to a record $10.7 billion in 2005.

India, the largest producer and consumer of pulses in the world, is seen doubling imports due to a shortage of about four million tonnes on account of a poor harvest in 2005/06, industry officials announced.

Most-active stocks

Tech Mahindra was the most-active stock with a turnover of Rs 172.60 crore followed by Mahindra Gesco, State Bank of India, Glenmark and Hindustan Zinc.

Advancers

Oil marketing firms surged as crude oil price fell to one year low on Thursday. BPCL ended at Rs 378.90, Indian Oil Corporation at Rs 511.05 and HPCL at Rs 319.90. All rose between 4.7% 6.3%.

NTPC surged nearly 4% to Rs 140.30. The company announced on Friday it planned to invest Rs 3,425 crore to set up a 520-megawatt hydro power project.