Stock market fixing:

Nikkei -238.69 -1.8% 12,834.18
Topix -24.07 -1.9% 1,230.64
FTSE -33.80 -0.60% 5,602.80
CAC -10.47 -0.23% 4,472.13
DAX -0.50 -0.01% 6,421.80

Japan's stocks fell the most in two weeks on concern demand for cars and electronics will fall as spending slows and wages stagnate.
Honda Motor Co., Japan's second-largest carmaker, dropped the most in a month after U.S. consumer spending declined and domestic auto sales fell. Sharp Corp. sank 3.1% after the nation's wages grew at the slowest pace all year. Nippon Oil Corp. tumbled 3.8% as crude prices advanced, raising its production costs.
Bridgestone Corp., the world's largest tiremaker, dropped 2.3%. Toyo Tire & Rubber Co. sank 4.9%, the lowest since March 18. About 60% of the materials used in tires are oil based, according to the Japan Automobile Tire Manufacturers Association.
Citizen Holdings Co. soared 8.7%, the sharpest gain since March 2002 and making it the biggest winner on the MSCI World Index. The watchmaker boosted its full-year profit target 14% citing a gain from the sale of shares.

Stocks in Europe fell, led by raw-materials producers and technology companies, as metals prices dropped and concern mounted that the economic slowdown will curb earnings.
BHP Billiton Ltd., the world's largest mining company, fell for the first time in four days after copper, nickel and tin prices slid.
Commerzbank AG plunged 11% after agreeing to buy Allianz SE's Dresdner Bank for 9.8 billion euros ($14.4 billion) in Europe's biggest financial-services takeover this year.
Daimler, the world's second-largest luxury carmaker, added 2.3%. Air France-KLM Group, Europe's biggest airline, climbed 4.3%.
Michelin, the world's second-largest tiremaker, rallied 6%. Merrill upgraded the stock to ``buy'' from ``neutral,'' citing declining oil prices and an aging fleet of cars needing replacement parts.

US financial markets were closed in observance of Labor Day.

The yen rose to the highest level in five months against the euro and rallied versus the dollar as a decline in stocks prompted traders to pare holdings of higher- yielding assets funded in the Japanese currency.

The pound fell to a record low against the euro after Chancellor of the Exchequer Alistair Darling said the British economy faces the worst slump in 60 years.

The Bank of England will keep interest rates unchanged at 5% on Sept. 4, according to a survey of economists.

The euro fell against the dollar on speculation European Central Bank policy makers will acknowledge this week that the euro-zone economy is weakening, making an rate increase less likely. The ECB will leave its benchmark rate at 4.25% on Sept. 4, according to a survey. Business confidence in Germany, Europe's largest economy, slumped last week, adding to concern the euro-zone will fall into a recession.

EUR/USD slowly eased down from $1.4720 to $1.4580 after the release of weak Germany retail sales figures.

GBP/USD also declined and tested 2-years lows. Ratefellfrom$1.8130 to$1.7980.

USD/JPYfellfromY108.70 toY107.60 beforereboundedtoY108.40.

EU PPI report is due to come at 09:00 GMT today and may weight on euro’s move ahead of ECB rate decision.

Later focus will be on ISM manuf. Index at 14:00 GMT with analysts predict index fell to 50.0 in