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 In midday European trading, Britain's FTSE 100 slid 0.4 percent to
5,684.22 and France's CAC-40 fell 0.5 percent to 3,852.18. Germany's
DAX was steady, edging up just 0.1 percent to 6,618.48.
Deutsche Bank AG reported a euro1.2 billion ($1.7 billion) loss for
the third quarter, due to a big charge related to its planned
takeover of retail lender Postbank AG. Underlying earnings were not
as bad as some investors expected, however, and its shares inched up
0.2 percent.
Swedish appliance maker Electrolux AB said third-quarter net profit
fell 15 percent, while Spain's BBVA bank posted a 17 percent drop.
Their shares were down 1.6 percent and 1.4 percent, respectively.
Finnish paper maker Stora Enso Oyj reported a profit, after a loss a
year earlier, and its stock rose over 2 percent.
Beyond corporate news, markets were focused on the prospects for
monetary stimulus by the Fed.
Traders have bet that the U.S central bank will enact a bond-buying
program in early November in a bid to support the world's biggest
economy. Buying bonds would drive interest rates and yields even
lower, which makes stocks a more attractive investment.
The Wall Street Journal reported Wednesday, without citing sources,
that the Fed will likely take a more gradual and flexible approach
to economic stimulus by announcing a new program to buy several
hundred million dollars worth of US Treasury bonds over the next few
months. That's in contrast to the nearly $2 trillion spent during
the financial crisis.
It also suggests traders' hopes that the size of the bond purchase
will be around $500 billion may be excessive. Those expectations
were dampened somewhat by a speech earlier this week by William
Dudley, the president of the Federal Reserve Bank of New York.
Dudley said further Fed action was "likely to be warranted" unless
the economic outlook improved. Still, he added that the Fed "cannot
wave a magic wand and make the problems remaining from the preceding
period of excess vanish immediately."
The Fed is due to decide on the new economic stimulus measures next
week.
Wall Street was expected to open lower. Dow futures lost 36 points,
or 0.3 percent, to 11,088.00 and broader S&P futures shed 5.7, or
0.5 percent, to 1,177.10.
Eyes are on more corporate earnings in the U.S., where some
companies released figures before trading opens.
Whirlpool Corp., the world's biggest appliance maker, said
third-quarter net income dropped 9 percent, dragged down by a
subsidiary's antitrust plea agreements.
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 Procter & Gamble Co., the world's largest consumer products company,
said sales increased and although net income fell 7 percent after
the sale of its prescription drug business, it was better than
markets expected.
Earnings from ConocoPhillips and Visa are due later, with investors
also looking to economic data releases on U.S. durable goods orders
and new home sales from September for direction.
In Asia, Japan's benchmark Nikkei 225 stock index trimmed gains to
close up just 9.65 points, or 0.1 percent, at 9,387.03. Exporters
got a modest lift as the yen reversed some of its recent strength
against the U.S. dollar.
Investors were reluctant to trade heavily ahead of the release of
corporate results from major Japanese companies including Sony Corp.
and Honda Motor Co. later this week.
South Korea's Kospi fell 0.5 percent to 1,909.54 after government
figures showed the country's economic growth slowed sharply in the
third quarter on weaker exports and manufacturing. Asia's
fourth-largest economy expanded 0.7 percent in the July-September
period after 1.4 percent growth in the previous quarter.
Hong Kong's Hang Seng index tumbled 1.9 percent to 23,164.58 and
mainland China's benchmark dropped 1.5 percent to 2,997.05.
Australia's S&P/ASX 200 shed 0.9 percent to 4,648.10. Benchmarks in
India, Singapore and Taiwan also fell.
In currencies, the dollar rose to 81.65 yen from 81.49 yen late
Tuesday in New York. The euro fell to $1.3807 from $1.3850.
Benchmark crude for November delivery slid 68 cents to $82.98 a
barrel in electronic trading on the New York Mercantile Exchange.
The contract rose 3 cents to settle at $82.55 on Tuesday.
[Associated
Press; By KELVIN CHAN]
Associated Press researcher Ji Chen in Shanghai contributed.
Copyright 2010 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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