European markets were pushed higher by oil stocks Tuesday after BP&S217;s third-quarter results beat analysts&S217; expectations. Asian indexes closed lower, following losses on Wall Street the previous day amid fears that equities have become overvalued.

On Wall Street, stock futures were little changed ahead of Tuesday&S217;s opening as investors prepared for new reports on home prices and consumer confidence.

In afternoon European trading, Britain&S217;s FTSE 100 rose 0.5 percent to 5,215.48, Germany&S217;s DAX added 0.2 percent to 5,655.26 and France&S217;s CAC 40 climbed 0.4 percent to 3,760.88.

Major Asian markets dropped by around 2 percent or more, with shares in resource companies hit after a steep fall in commodity prices.

In London, BP gained 4 percent after it reported a 34 percent fall in third-quarter profit to $5.3 billion, as oil and gas prices fell from record levels a year earlier.

The figure from Europe&S217;s second-largest oil company compared with an $8 billion profit in the third quarter of 2008, but was up from $4.4 billion in the second quarter and well ahead of analysts&S217; forecasts.

&S220;The fall in earnings was well trailed, but the numbers nonetheless have obliterated market forecasts, as evidenced by the spike in the share price in early trade,&S221; said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.

Two other oil stocks, Total and Shell, added 2.1 percent and 1.4 percent respectively, partly offsetting weakness in financials.

In Asia, investors unloaded shares after American markets got pounded as the dollar strengthened and anxiety grew about the market overheating, given the troubles still facing major Western economies and a number of financial companies free instant credit reports.

Some analysts said the markets, up massively since March, could get more choppy even if they continued to advance.

&S220;The market has gotten high enough, so there&S217;s some profit-taking right now,&S221; said Francis Lun, general manager of Fulbright Securities in Hong Kong. &S220;The summer rally seems to be over, and I think we&S217;re facing a cold winter.&S221;

In Japan, the benchmark Nikkei 225 stock index lost 1.5 percent to 10,212.46 points. Hong Kong&S217;s market, which was closed Monday, dropped 1.9 percent to 22,169.59.

China&S217;s Shanghai market led Asia&S217;s declines, tumbling 2.8 percent to 3,021.46. Australia&S217;s market lost 1.6 percent and India&S217;s Sensex was 2 percent lower.

South Korea&S217;s Kospi shed 0.5 percent to 1,649.53 a day after new figures showed the country&S217;s economy, Asia&S217;s fourth largest, expanded at its quickest pace in seven years in the last quarter.

Oil prices lingered below $79 a barrel Tuesday in Europe after three days of losses as investors eyed a volatile dollar. Benchmark crude for December delivery rose 28 cents to $78.96; the contract fell $1.82 overnight.

Oil Stocks Push European Markets Higher

NEW YORK (Reuters) – Verizon Communications Inc&&9;s (VZ.N) third-quarter profit fell a less-than-expected 9 percent as it added more wireless customers than analysts had forecast.

While Verizon Wireless lost some market share to AT&T Inc (T.N), the exclusive U.S. provider for Apple Inc&&9;s (AAPL.O) iPhone, said its 1.2 million net customer additions was ahead of the average estimate of 1 million customers from five analysts contacted by Reuters.

"(Verizon) certainly did see some pressure from iPhone in the quarter but it&&9;s tough to complain about 1.2 million net adds," said Stifel Nicolaus analyst Chris King.

In comparison, AT&T added 2 million customers in the third quarter. Verizon Communications owns 55 percent of Verizon Wireless, while Vodafone Group Plc (VOD.L) owns the remaining stake.

Verizon&&9;s profit fell to &&6;2.89 billion, or 41 cents per share, from &&6;3.2 billion, or 59 cents a share, in the same quarter a year earlier. Excluding one-time items, earnings were 60 cents per share, compared with the average analyst estimate of 59 cents per share, according to Thomson Reuters I/B/E/S auto loans for bad credit.

Revenue rose 10.2 percent to &&6;27.27 billion from &&6;24.75 billion in the year-earlier quarter, helped by its purchase earlier this year of rural mobile operator Alltel.

Analysts had expected revenue of &&6;27.17 billion. On a pro forma basis, as if Verizon had owned Alltel last year, revenue would have risen 0.6 percent.

Verizon added 191,000 FiOS television customers in the quarter, bringing its customer base to 2.7 million. This was well below King&&9;s expectation for 250,000, suggesting increasing competition in the quarter.

"Certainly cable was a little more aggressive in the third quarter," King said.

Verizon&&9;s Chief Executive Ivan Seidenberg said that the company would improve with the economy.

Shares were up 14 cents to &&6;28.99 in premarket trading.

(Reporting by Sinead Carew; Editing by Derek Caney)

Verizon profit falls, wireless subscribers beat