Europe stocks lower

European stocks fell yesterday, surrendering most of the previous day's gains as cuts in annual forecasts from Daimler and Renault hit autos and weakening commodities dragged oils and miners lower.

Credit Suisse surged 5.3 per cent after posting forecast-beating earnings, but this failed to spark a rally in the banking sector, which lost 0.6 per cent.

Dutch mail company TNT NV plunged 16 per cent in late trade after the Wall Street Journal reported that takeover talks with FedEx had ended.

The FTSEurofirst 300 index of top European shares closed 1.5 per cent lower at 1,170.80 points. The index, which is down 22 per cent year-to-date, rose 2.1 per cent on Wednesday.

Shares of automakers got hammered after both Daimler and Renault cut their forecasts, quashing hopes for the troubled sector that had emerged on Wednesday when PSA Peugeot, Volkswagen and Fiat stuck to their targets.

Daimler sank 9.6 per cent, Peugeot fell 7.2 per cent, and Renault dropped 3.4 per cent.