Stocks: Monday’s review

European stocks fell for a second day as Japanese exports tumbled and investors speculated that victory in regional elections for Spain’s Prime Minister Mariano Rajoy reduces pressure for him to seek a bailout.

The Stoxx Europe 600 Index (SXXP) slipped 0.4 percent to 272.93 in London, having earlier risen as much as 0.3 percent. The measure lost 0.8 percent on Oct. 19 as European Union leaders failed to discuss additional assistance for Spain at a summit in Brussels. The gauge has still rallied 17 percent from the June 4 low as the European Central Bank unveiled a bond-purchase program to support the economy.

Japan’s exports slid 10.3 percent in September from a year earlier, leaving a trade deficit of 558.6 billion yen ($7 billion), the Finance Ministry said in Tokyo today. The median forecast in a Bloomberg survey of analysts was for a 9.9 percent export decline. The drop was the most since May 2011, two months after a magnitude-9 quake struck Japan’s northeast, triggering a tsunami and a nuclear disaster that led to the shuttering of most of the nation’s reactors.

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

FTSE 100 5,882.91 -13.24 -0.22% CAC 40 3,483.25 -21.31 -0.61% DAX 7,328.05 -52.59 -0.71%

In Spain, Rajoy’s party extended its majority in the stronghold region of Galicia, winning 41 of the 75 seats in the regional assembly. Spanish bonds fell, sending the yield on 10- year debt up 9 basis points to 5.46 percent.

Greek Prime Minister Antonis Samaras will meet with the heads of the parties supporting his coalition government tomorrow to discuss 13.5 billion euros ($17.6 billion) of budget measures for 2013 and 2014 to persuade creditors to release further funds for the debt-stricken nation.

Veolia, the world’s largest water company, fell 4.5 percent to 8.13 euros and Suez Environnement dropped 1.6 percent to 8.30 euros after denying merger talks.

Nexans tumbled 6.7 percent to 33.96 euros, dropping the most in almost six months. The world’s second-biggest maker of cables reduced its full-year revenue forecast, predicting “stable” sales compared with a previous prediction for “slight organic growth.”

Valeo SA (FR), France’s second-largest car-parts maker, slid 3.7 percent to 34.62 euros as the stock was reduced to hold from buy at Deutsche Bank.

Aggreko Plc (AGK), the world’s biggest provider of mobile power supplies, slipped 2.8 percent to 2,077 pence. The company was cut to underweight, the equivalent of sell, from neutral at HSBC Holdings Plc.

Philips advanced 5.6 percent to 20.08 euros, the biggest gain in almost three months. The company said third-quarter earnings before interest, taxes, amortization and one-time items rose 43 percent to 562 million euros. Analysts in a Bloomberg survey had predicted 520 million euros. Sales of 6.13 billion euros beat a 5.95 billion-euro prediction.

Scania rose 3.2 percent to 124.10 kronor. The Swedish truckmaker controlled by Volkswagen AG said orders for its trucks and buses fell 10 percent in the third quarter, compared with a 14 percent drop in the previous period. Net income of 1.5 billion kronor ($230 million) was in line with analysts’ estimates.

OC Oerlikon AG rallied 4.3 percent to 9.48 Swiss francs. The Swiss maker of textile machinery and car gears said Chinese regulators approved the sale of its solar division to Tokyo Electron Ltd.

Salzgitter AG (SZG), Germany’s second-biggest steelmaker, gained 3.7 percent to 34.76 euros as Credit Suisse Group AG raised the stock to outperform, the equivalent of buy, from neutral.

Major U.S. stock indices ended the session slightly above zero, showing a significant increase at the end of the auction.

At the same time, there remain high chances of continuation of Friday's decline, which had a broad-based and held at high volumes. The focus of the market participants are quarterly reports of companies.

Today, a quarterly report presented by Caterpillar (CAT), which is one of the world's largest construction equipment manufacturers (see the article published in the 12:30 GMT). Earnings per share was higher than forecast, but revenue was below expectations. At the same time, the company lowered its forecasts for the financial indicators for 2012 and 2013.

In CAT noted that "conditions in the global economy proved weaker than expected."

Also voiced expectations that the "global economic growth in 2013 will be slightly higher" than 2012. Expected "modest improvement in the U.S., China and most developing countries, but the difficulties in Europe will continue."

Most of the components of the index DOW are in the red. Grew more than others in the share price Hewlett-Packard Company (HPQ, +1,21%). Shares fell more than other Microsoft Corporation (MSFT, -2,34%).

All sectors, except one, are in the red zone. More than other sectors of manufactured goods fell (-0.6%). Growth captures only high-tech sector (+0.4%)

At the close:

Dow 13,345.89 +2.38 +0.02%

Nasdaq 3,016.96 +11.34 +0.38%

S & P 500 1,433.79 +0.60 +0.04%