Stock indices decreased traded lower due to losses in the banking sector. There are growing concerns over the financial health of Porugal's Espirito Santo Financial Group. Espirito Santo Financial Group is the largest lender in Portugal.

In the early trading session, stock markets were driven by the weaker-than-expected data from France. French industrial production declined 1.7% in May, missing expectations for a 0.5% rise, after a 0.3% gain in April.

On a yearly basis, French industrial production fell 3.7% in May, after a 2.0% drop in April.

French consumer price index remained flat in June, missing expectations for a 0.2% rise. On a yearly basis, French consumer price index increased 0.6% in June, after a 0.7% gain in May.

Gerresheimer AG shares jumped 3.6% after reporting better-than-expected quarterly earnings.

DNB ASA shares declined 5.0% after the company's second quarter net income missed analysts' forecasts.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,672.37 -45.67 -0.68%

DAX 9,659.13 -149.07 -1.52%

CAC 40 4,301.26 -58.58 -1.34%

U.S. stock-index futures fell sharply as the Federal Reserve unveiled its plan for winding down its asset-buying program and the parent of a Portuguese bank delayed payments on some short-term debt.

Global markets:

Nikkei 15,216.47 -86.18 -0.56%

Hang Seng 23,238.99 +62.92 +0.27%

Shanghai Composite 2,038.34 -0.27 -0.01%

FTSE 6,654.4 -63.64 -0.95%

CAC 4,284.09 -75.75 -1.74%

DAX 9,634.53 -173.67 -1.77%

Crude oil $102.02 (-0.26%)

Gold $1343.20 (+1.43%)

(company / ticker / price / change, % / volume)

Upgrades:

Alcoa (AA) upgrade from Equal-Weight to Overweight at Morgan Stanley

Downgrades:

UnitedHealth (UNH) downgraded from Buy to Hold at Jefferies

Other:

FedEx (FDX) target raised to $169 from $162 at Argus

Stock indices decreased after the weaker-than-expected data from France. French industrial production declined 1.7% in May, missing expectations for a 0.5% rise, after a 0.3% gain in April.

On a yearly basis, French industrial production fell 3.7% in May, after a 2.0% drop in April.

French consumer price index remained flat in June, missing expectations for a 0.2% rise. On a yearly basis, French consumer price index increased 0.6% in June, after a 0.7% gain in May.

Stock markets were also driven by yesterday's Fed's monetary policy meeting minutes. Markets participants were disappointed because there was no information on when the Fed could start to raise its interest rate. The Fed could keep interest rate at low level for a longer period.

Fed policymakers agreed to end the Fed's bond-buying programme in October.

The Fed said that the economy is continuing to improve. But there are different views over the outlook for inflation.

The central bank added that U.S. consumer prices should increase and the labour market tighten before it will start to raise its interest rate.

Gerresheimer AG shares jumped 5.8% after reporting better-than-expected quarterly earnings.

DNB ASA shares declined 4.5% after the company's second quarter net income missed analysts' forecasts.

Current figures:

Name Price Change Change %

FTSE 100 6,660.5 -57.54 -0.86%

DAX 9,653.77 -154.43 -1.57%

CAC 40 4,289.01 -70.83 -1.62%

Most Asian stock indices declined due to the weaker-than-expected trade data from China. China's trade surplus declined to $31.6 billion in June from a surplus of $35.9 billion in May, missing expectations for an increase to a surplus of $37.3 billion.

Chinese exports in June rose 7.2% from a year earlier. Imports increased 5.5%.

The core machinery orders in Japan dropped 19.5% in May, missing expectations for a 0.9% gain, after a 9.1% fall in April.

On a yearly basis, the core machinery orders in Japan declined 14.3% in May, missing expectations for a 9.5% rise, after a 17.6% increase in April.

Japan's tertiary industry index rose 0.9% in May, missing forecasts of a 1.9% increase, after a 5.4% drop in April.

Indexes on the close:

Nikkei 225 15,216.47 -86.18 -0.56%

Hang Seng 23,238.99 +62.92 +0.27%

Shanghai Composite 2,038.34 -0.27 -0.01%

(index / closing price / change items /% change)

S&P/ASX 200 5,452.48 -58.46 -1.06%

TOPIX 1,270.82 -4.88 -0.38%

SHANGHAI COMP 2,038.61 -25.41 -1.23%

HANG SENG 23,176.07 -365.31 -1.55%

FTSE 100 6,718.04 -20.41 -0.30%

CAC 40 4,359.84 +17.31 +0.40%

Xetra DAX 9,808.2 +35.53 +0.36%

S&P 500 1,972.83 +9.12 +0.46%

NASDAQ 4,419.03 +27.57 +0.63%

Dow Jones 16,985.61 +78.99 +0.47%