European stocks extended declines for a third day as payrolls in the world’s biggest economy increased less than forecast in June.
German industrial output rebounded more than economists forecast in May as construction buttressed Europe’s largest economy against the sovereign debt crisis.
Production rose 1.6 percent from April, when it dropped 2.1 percent, the Economy Ministry in Berlin said today. Economists forecast an increase of 0.2 percent. Production was unchanged from a year earlier when adjusted for working days.
Spanish industrial production fell for the ninth month in May as the recession in the euro area’s fourth-largest economy worsened amid rising borrowing costs.
Output at factories, refineries and mines adjusted for the number of working days fell 6.1 percent from a year earlier, after an 8.3 percent decline in April, the National Statistics Institute in Madrid said today.
National benchmark indexes fell in 16 of the 18 western- European markets. Germany’s DAX and France’s CAC 40 each declined 1.9 percent. The U.K.’s FTSE 100 lost 0.5 percent.
Peugeot, Europe’s second-largest carmaker, slid 7.7 percent, the most since November, to 7.08 euros. The company said first-half sales declined to 1.62 million trucks from 1.86 million a year earlier as demand slumped in European markets.
BBVA tumbled 5.1 percent to 5.18 euros after HSBC downgraded the stock to neutral from overweight, meaning investors shouldn’t buy more of the shares.
Air France-KLM gained 4.4 percent to 4.06 euros after it reported a 4.6 percent increase in June passenger traffic and unions said an agreement had been reached on cutting ground- staff positions.
Arkema SA, a French maker of industrial chemicals, surged 11 percent to 59.28 euros. The company may have received “multiple takeover approaches” valuing the business at 5.5 billion euros ($6.8 billion) or more, FT Alphaville reported.
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