Stocks: Monday’s review

European stocks retreated as slowing economic growth in Japan offset increased demand at an Italian debt auction.

Petrofac (PFC) Ltd. fell 5.2 percent as the oil and gas engineer said profit growth will slow. Unicredit SpA and Intesa (ISP) Sanpaolo SpA advanced after Italy sold 8 billion euros ($9.9 billion) of debt.

The Stoxx 600 fell 0.4 percent to 268.72 at the close of trade.

National benchmark indexes fell in 14 of the 18 western European markets today.

FTSE 100 5,831.88 -15.23 -0.26% CAC 40 3,426.41 -9.21 -0.27% DAX 6,909.68 -34.88 -0.50%  

Japanese data today showed a reconstruction-fueled rebound in the country’s economy waned in the second quarter as consumer spending growth almost stalled and export gains diminished.

Gross domestic product advanced an annualized 1.4 percent in the three months through June, less than the median economist estimate of 2.3 percent.

Julius Baer (BAER) dropped 7.4 percent to 32.80 Swiss francs after the money manager agreed to pay about 860 million francs ($880 million) for Bank of America’s Merrill Lynch non-U.S. wealth management business. The company plans to raise 750 million francs through a rights offering to help fund the deal.

Petrofac dropped 5.2 percent to 1,486 pence for a fourth- day of declines after the U.K. oil and gas engineer said profit growth in the second half will slow as projects are delayed. The company reported first-half net profit of $325 million, beating the average analyst estimate of $314 million.

Nokia Oyj (NOK1V) declined 6 percent to 2.18 euros.

Solarworld AG (SWV) sank 12 percent to 1.16 euros after Germany’s biggest panel-maker said it sees lower full-year revenue in 2012 from a year earlier. The company reported a second-quarter net loss of 161 million euros and sales of 169.6 million euros for the period.

Unicredit (UCG), Italy’s largest bank, rose 1 percent to 2.94 euros. Intesa, the country’s second-biggest, gained 0.8 percent to 1.10 euros.

Even though the observed correctional movement, the major U.S. stock indexes have not been able to cover all losses incurred today and closed in the red.

The pressure on the indices continue to have concerns about further slowdown in the global economy.

The reason for these fears have data on Japan's GDP and lower projections for growth in the Chinese economy.

The published statistics of Japan's GDP grew recorded in the 2nd quarter by 0.3% q / q in the expectations of 0.6%.

Today, analysts are Bank of America (BAC) reduced the growth forecast for China's economy in 2012 to 7.7% from 8.0%.

Under the pressure of today were the shares of companies that depend heavily on economic growth. In particular, substantial losses are shares of miners and producers of raw materials.

As part of the index DOW almost all components are in red. The growth shows only American Express Company (AXP, +0.47%), Walt Disney Co. (DIS, +0.36%), Kraft Foods Inc. (KFT, +0.12%), 3M Co. (MMM, +0.02%). More than others in the share price fell DuPont (DD, -1,7%).

Branches in the context of all major sectors of the index S & P are in the red. Most of all basic materials sector fell (-0.9%).

At the time of closure:

Dow -38.52 13,169.43 -0.29%

Nasdaq +1.66 3,022.52 +0.05%