Stocks lower…Pending homes sales up…European bank stocks hit by tests

NEW YORK (AP) — Stocks are lower in early trading on disappointing economic news from Europe and lower oil prices. A report on German business confidence shows a sixth straight month of declines. Germany is Europe’s largest economy. A separate report from the European Central Bank shows 13 of the region’s 130 biggest banks failed a review of their finances.

WASHINGTON (AP) — The number of Americans signing contracts to buy homes ticked up slightly in September. The National Association of Realtors says its seasonally adjusted pending home sales index rose 0.3 percent over the past month to 105. Tight credit and price increases have limited buying activity. About 15 percent of the real estate agents surveyed say they couldn’t close a deal because the buyer was unable to obtain a mortgage.

FRANKFURT, Germany (AP) — Italian bank shares are being hit hard today as investors get their first chance to react to a far-reaching review of Europe’s banks, which mainly flunked a few smaller financial groups in economically weaker countries. Overall, the test found Europe’s big banks had strong enough finances to weather a sharp economic downturn. But the test is raising questions about several banks in Germany, which fell short on a tougher measure of financial strength that will apply in coming years.

UNDATED (AP) — Valeant Pharmaceuticals says it’s raising its offer for Botox maker Allergan to $200 or more per share. The Canadian drugmaker made the statement in a letter to Allergan’s board released publicly. Valeant did not specify details of any new offer, but said the increase would consist of added “consideration” and expected appreciation of Valeant’s own stock to be used in any deal. Valeant has made several offers to buy Allergan, the latest amounting to about $179 per share.

NEW YORK (AP) — Chiquita Brands International has agreed to sell itself to two Brazilian companies for approximately $681 million. The deal comes just days after the fresh produce company’s shareholders rejected plans to merge with Irish fruit importer Fyffes. Chiquita says it will be acquired by investment firm Safra Group and juice company Cutrale Group for $14.50 per share, a 2 percent premium to its Friday closing price.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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