Stocks register decline for fifth straight week

Eurostoxx 50:2,789.11 (+6.54) Frankfurt DAX:(7,098) (+24.67) Paris CAC:3,890.68 (+0.81)

EUROPEAN STOCKS declined for a fifth straight week, the longest losing streak since July 2008, as US jobs and manufacturing data that missed forecasts fuelled concern the recovery in the world’s largest economy may falter.

Rio Tinto and BHP Billiton led raw-material shares to the largest drop among 19 industry groups in the Stoxx Europe 600 Index as the US jobless rate unexpectedly rose and a gauge of Chinese manufacturing expanded at the slowest pace in nine months.

Nokia slumped the most in 10 years after the Finnish maker of mobile phones cut its forecasts for the devices and services unit.

The Stoxx 600 lost 1.9 per cent to 273.67 this week, the biggest drop since March 18th. The benchmark gauge for European equities has retreated 3.6 per cent over the past five weeks amid speculation Greece may default on its debt payments and increasing concern that global growth may slow.

“The US jobs reading is a bit of a shock to the system,” said Joshua Raymond, a market strategist at City Index in London. “The recent data coming out of the US paints the picture of a sharp slowdown in activity this quarter.”

The UK’s FTSE 100 declined 1.4 per cent, Germany’s DAX slipped 0.8 per cent and France’s CAC 40 fell 1.5 per cent, the biggest drop in seven weeks.

Greece’s ASE Index rallied 5.4 per cent amid speculated that European officials will sanction additional financial assistance for the indebted nation.

BHP Billiton, the world’s largest mining company, lost 3.5 per cent and Rio Tinto retreated 3.7 per cent.

Antofgasta lost 2.8 per cent and Anglo American declined 1.7 per cent.

Nokia tumbled 22 per cent to the lowest since January 1998 after cutting its devices and services forecasts on lower prices and competition from Google and Apple. Nokia has declined 42 per cent this year, cutting the company’s market value to €16.8 billion.

Unione di Banche Italiane tumbled 4.8 per cent as Italy's fourth-biggest bank said it will raise as much as €1 billion  selling shares to bolster capital. – (Bloomberg)