European stocks fell after reaching a 14-month high yesterday, as investors awaited a Federal Reserve policy meeting that may include an announcement of further stimulus measures.

The Fed is likely today to announce another round of bond purchases, according to almost two-thirds of economists in a Bloomberg survey. The previous two series of quantitative easing totaling $2.3 trillion have failed to revive the labor market, which Fed Chairman Ben S. Bernanke said last month is a “grave concern.”

EADS slid 5.5 percent to 26.47 euros. The company said yesterday it has entered talks for a tie-up with BAE to build an equal to Boeing Co. that would balance civil and defense operations. Deutsche Bank AG downgraded the stock to hold from buy.

BAE lost 5.3 percent to 344.2 pence. Europe’s biggest arms maker was downgraded to hold from buy at Oriel Securities Ltd.

Barclays advised investors to trim their exposure to EADS and take profits in BAE given the potential for near-term challenges in the deal closure process.

FTSE 100 5,781.95 -0.13 0.00%

CAC 40 3,521.77 -22.02 -0.62%

DAX 7,319.53 -24.00 -0.33%