Auctioneer Sotheby's cuts losses

This Van Gogh painting has failed to sell at Sotheby's auction

Sotheby's, the auction house which this week failed to sell a painting by the artist Vincent van Gogh, has reported a narrower third-quarter loss.

Its net loss was cut to $20.9m (£10m) in the three months ending 30 September compared with $30.4m a year earlier.

The company, which has main offices in London and New York, said it had benefited from higher commission revenues and a cost-cutting program.

However, Sotheby's shares fell on fears that the art market was slowing down.

Sotheby shares lost 9% lower on Friday, extending Thursday's 28% decline after its art auction, supposed to be one of biggest of the year, failed to live up to expectations.

The development provoked fears of a slowing art boom amid economic worries.

"Tepid results for a major sale suggest a cloudier macro-economic outlook for the art market," said Banc of America analyst Dana Cohen.

The worry for many observers is that slower economic growth would crimp corporate earnings, especially in the financial markets.

However, some experts think that the estimates were too high on the painting, citing that as the reason for the weak demand, and not a sudden falling away of wealthy buyers.

Elizabeth von Habsburg, president of independent appraisal and art consulting firm Gurr Johns Masterson, believes that "the high-end art market is not driven by Wall Street bonuses".