European Stocks Decline After Weekly Gain; BNP Drops


European stocks fell, after posting a ninth weekly gain in ten, as euro-area manufacturing weakened. U.S. index futures and Asian shares were little changed.

BNP Paribas SA slid after a person familiar with the negotiations said France’s biggest lender close to an agreement to plead guilty to settle U.S. sanctions allegations. Distribuidora Internacional de Alimentacion SA advanced 4 percent after the Spanish discount grocer said it would sell its French business to Carrefour SA.

The Stoxx Europe 600 Index lost 0.6 percent to 346.14 at 9:11 a.m. in London. The benchmark gauge advanced 0.3 percent last week as the Federal Reserve pledged to keep interest rates low for a prolonged period and closed 0.5 percent away from a six-year high. Standard & Poor’s 500 Index futures and the MSCI Asia Pacific Index climbed less than 0.1 percent each today.

A Markit Economics report showed that euro-area manufacturing slid to 51.9 this month from 52.2 in May. Economists had forecast it would be unchanged. A similar release for the U.S. may indicate that output slid to 56 in June from 56.4 in May, the projections show. In China, the gauge rose to a seven-month high in June, according to the preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics. A number above 50 indicates expansion.

In the U.S., a National Association of Realtors report at 10 a.m. New York time may show that previously owned U.S. home purchases climbed to a 4.74 million annualized rate in May, according to economists in a Bloomberg News survey. They rose to a 4.65 million rate the previous month.


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