Auto Makers, Banks Lead European Shares Lower

(RTTNews) - European stocks fell on Wednesday, extending recent losses after stabilizing in the previous two sessions.

Renewed fears about the conflict in Ukraine and the euro zone economy had investors on edge ahead of tomorrow's interest rate decision from the European Central Bank.

Another round of disappointing economic data from Italy drove the nation's main stock index down more than 3 percent.

Elsewhere, German manufacturing orders surprisingly fell sharply in June. German bond yields spiked higher in a rush to safer assets.

The Euro Stoxx 50 index of eurozone bluechip stocks dropped 0.77 percent, but finished well off the lows of the session. The index is down 3.8 percent from a week ago.

The German DAX slipped 0.67 percent and the French CAC 40 slid 0.7 percent. The UK's FTSE 100 lost 0.81 percent.

Daimler, Volkswagen and BMW all posted notable losses.

In Paris, Renault dropped 3 percent. Citigroup raised the car maker to "Neutral" from "Sell.

Commerzbank and Deutsche Bank led banks lower. Hannover Re lost 2.4 percent, despite reporting higher profit.

Lanxess jumped 3.4 percent. The specialty chemicals company reported a sharp increase in second-quarter profit, reflecting lower costs, despite a decline in sales.

Jefferies started Axa with a "Buy" rating. But the stock slipped 0.65 percent.

In London, Shire dropped 4.5 percent and Sports Direct slipped 2.9 percent.

AstraZeneca and Simith & Nephew also fell sharply.

Credit Suisse raised Fresnillo to "Neutral" from "Underperform." The stock rallied 4 percent.

ING is moderately higher in Amsterdam, after second-quarter profit rose.