(by Mark Riley)

European markets fall after an alert over possible terrorist attacks in the U.S.

The Dow Jones Stoxx 50 Index fell 0.5 percent to 2638. The Stoxx 600 slipped 0.5 percent and the Euro Stoxx 50, a measure for the 12 countries using the euro, dropped 1.1 percent. Germany’s DAX Index declined 1.2 percent, France’s CAC 40 Index fell 0.9 percent and the U.K.’s FTSE 100 Index dropped 0.3 percent. September futures on the Euro Stoxx 50 fell 0.8 percent. Iceland’s ICEX 15 Index opened at 11 a.m.

The U.S. government said al-Qaeda may be planning attacks on financial institutions including the New York Stock Exchange. The alert raised concern companies may cut international travel plans and that higher oil prices could erode corporate profits.

Clariant, which as the world’s second-largest specialty- chemicals maker uses oil as a raw material, fell 1.5 percent to 17 Swiss francs amid concern production costs may increase and crimp earnings.

Air France, Europe’s largest airline, fell 2.3 percent to 12.67 euros. British Airways Plc, Europe’s second-biggest carrier, declined 3.7 percent to 222.25 pence. Fuel makes up as much as 16 percent of a carrier’s costs, according to Aviation Economics, a consultancy firm.

HSBC climbed 3.7 percent to 837 pence after the lender said first-half profit rose 55 percent from the year-earlier period to $6.35 billion as it cut costs at its consumer-lending business and set aside less money to cover loans that may not be repaid. The bank was expected to earn $5.26 billion, according to the median estimate of 10 analysts surveyed by Bloomberg News.

HBOS fell 2.4 percent to 695.5 pence after saying yesterday it is considering a bid for Abbey National Plc, Britain’s second- biggest mortgage lender, which would challenge an 8.2 billion- pound ($14.8 billion) offer by Santander Central Hispano SA.

Abbey National shares added 2.1 percent to 579 pence.

Deutsche Bank AG, Europe’s third-biggest bank, declined 1.7 percent to 56.57 euros. Stuart Graham, an analyst at Merrill Lynch & Co., cut the lender’s earnings-per-share estimate for this year and next after it posted weaker-than-expected second- quarter results on Friday.

Euro Disney SCA, Europe’s biggest theme-park operator, fell 9.7 percent to 28 euro cents. The company’s lenders delayed a decision until Sept. 30 on refinancing the operator, casting doubt on whether a Walt Disney Co.-backed bailout will be enough to resuscitate the company.

Creditors previously had until Saturday to accept an accord reached in June by Euro Disney, Walt Disney and three French banks that called for a 250 million-euro share sale. Euro Disney said third-quarter sales fell 3 percent to 266.6 million euros.

Renault SA, France’s second-largest carmaker, shed 1.6 percent to 64.50 euros. French car and light-truck sales fell 9.3 percent in July, paced by a decline at Renault, following a surge of spending a month earlier by consumers taking advantage of retailers’ discount clearance sales. Renault sold 47,125 cars and light trucks, 18 percent fewer than a year earlier.