7:00PM New York, 1:00AM Frankfurt, 9:00AM Sydney– European indexes track declines in the U.S. as investors begin to worry about the second quarter earnings.

European market indexes decline as worries of inflation, lower economic growth and faltering profits in the region grip the market. FTSE 100 index is down 15% for the first half and DAX 30 index has declined 19% in the period. In Paris, CAC 40 index is down 20% for the year and has declined 24% from its peak in October of last year. U.S. market indexes have declined nearly 20% from their peaks since October of last year.

European markets closed lower after crude oil futures rose, auto makers declined and Carrefour SA lowered its sales outlook. Ericsson fell after its mobile handset unit in partnership with Sony lowered its business outlook. Separately Nokia fell 4.5% after Credit Suisse lowered its rating on the stock and lowered its price target by 38% to 18.50 euros. Cairn Energy Plc rose after a UK broker raised its target and the company said that it plans to spend $2 billion in India to increase its crude oil production.

Carrefour SA fell 8% after it lowered its growth in operating profit at a rate of sales growth from its earlier estimate of faster growth in operating profit.

SMA Solar Technology AG rose 17% to 55.50 after it priced its initial public offering at 47 euros. The electricity converter maker raised 362 million euros has annual sale 327 million euros and employs 2,500 people.

Deutsche Bank fell 3% after Citigroup analysts said that the bank will need to raise more capital to maintain its tier capital requirements. The chief executive of the bank earlier denied that the company is looking to raise capital.

U.S. stocks traded in a tight range with no direction after losing 3% in the previous session. The U.S. decline set-off a worldwide sell-off with India and China losing nearly 5% and Brazil declining 3%. Higher losses and charges at banks, rising inflation and stagnating economies are dragging stocks in the U.S. and around the world. Lehman increased estimate of losses at Merrill Lynch. Crude oil traded above $141 a barrel.

European Markets Indexes

The CAC 40 retreated 0.62% to 4,398.58. In Germany the DAX 30-index fell 32.63 or 0.51% to 6,426.97. Shares in Switzerland fell as the Swiss Market index dropped 88.19 or 1.27% to 6,861.54. The FTSE 100 fell 5.10 or 0.09% to 5,513.10.

European Gainers and losers

Vallourec led the gainers in the CAC 40 index stocks with a rise of 5.46% to 219.87 euros followed by gains in Bouygues of 3.43% to 42.19 euros, in Total of 1.60% to 52.71 euros, in Michelin of 1.56% to 45.57 euros and in Saint Gobain of 1.28% to 41.15 euros.

Carrefour led the decliners in the CAC 40 index with a loss of 7.84% to 34.91 euros followed by losses in Dexia of 4.09% to 10.09 euros, in Cap Gemini of 2.65% to 37.10 euros, in Alcatel-Lucent of 2.44% to 3.81 euros and in Lafarge of 2.43% to 98.25 euros.

Among the DAX 30 index shares, ThyssenKrupp led the gainers with a rise of 2.19% to 40.55 euros followed by gains in Bayer of 1.81% to 52.91 euros, in E.ON AG of 1.25% to 127.19 euros, in Continental of 0.50% to 64 euros and in Volkswagen of 0.33% to 178.59 euros.

MAN AG led the decliners in the DAX 30 index with a fall of 3.41% to 72.85 euros followed by losses in Deutsche Borse of 2.95% to 71.63 euros, in Daimler of 2.90% to 39.89 euros, in Hypo Real Estate Holdings of 2.69% to 18.47 euros and in Deutsche Bank of 2.45% to 55.76 euros.

North American Markets indexes

Dow Jones Industrial Average dropped 106.91 to a close of 11,346.51, S&P 500 closed down 4.77 or 0.37% to 1,278.38, and Nasdaq Composite Index decreased 5.74 or 0.25% to close at 2,315.63. In Toronto TSX Composite closed down 63.07 or 0.44% to 14,355.21.

Of the 30 stocks in Dow Jones Industrial Average none gained, 8 declined and 22 closed unchanged.

JP Morgan Chase led the decliners in the Dow Jones index with a fall of 3.5% followed by losses in Procter & Gamble of 2.8%, in United Tech Corp of 2.6%, in Home Depot of 2.6% and in Coca Cola of 2.59%.

Merck & Company led the gainers in the Dow Jones with a rise of 2.2% followed by increases in General Motors of 1.05%, in Pfizer Inc of 0.6%, in Chevron Corp of 0.4%, in Alcoa Inc of 0.23%.

Of the stocks in S&P 500 index, 187 increased, 308 declined, and 5 were unchanged. Of the index stocks 19 increased more than 3% and 33 declined more than 3%.