European Stocks Decline on Economic Concerns

European (SXXP) stocks fell before a report that may confirm a contraction in the euro-area economy and as investors weighed Greece’s chances of avoiding default by getting private creditors to accept a debt swap. U.S. index futures and Asian shares also dropped.

PSA Peugeot Citroen tumbled 6.1 percent after announcing plans to raise 1 billion euros ($1.32 billion) in a rights offer and saying it won’t pay a dividend for 2011. Cable & Wireless Worldwide Plc (CW/) retreated 6.6 percent after a newspaper report speculating that a potential bidder won’t make an offer for the company. Nyrstar NV, the largest producer of refined zinc, paced commodity shares lower.

The Stoxx Europe 600 (SXXP) Index declined 1.3 percent to 262.20 at 9:39 a.m. in London. The benchmark gauge slid yesterday as data showed euro-area manufacturing and services shrank more than estimated, and China cut its economic-growth forecast. The measure has still advanced 7.2 percent so far in 2012. Futures on the Standard & Poor’s 500 Index expiring this month lost 0.8 percent. The MSCI Asia Pacific Index slipped 1.2 percent.

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