European stocks declined before a report on U.S. consumer sentiment, amid concern that budget wrangling in Washington will lead to a government shutdown. U.S. index futures retreated, while Asian shares were little changed.

Economic confidence in the euro-area increased in September more than economists had forecast. An index of executive and consumer sentiment rose for a fifth month to 96.9 from a revised 95.3 in August, the European Commission in Brussels said today. That beat the median estimate of 96 in a Bloomberg survey.

Vallourec sank 9.5 percent to 44.67 euros. The French producer of steel pipes for the oil and gas industry said after the close of trading yesterday that a weak Brazilian real and slowing of drilling in that country may hurt profit.

Tenaris SA declined 3.8 percent to 17.17 euros. Bank of America Corp cut its rating on the steel-pipe maker to neutral from buy, citing lower near-term earnings expectations due to sluggish trends in North America and Europe.

Vestas surged 12 percent to 148.80 kroner. Mitsubishi Heavy and the Danish turbine maker agreed to form a venture to develop offshore wind energy. The partnership, to be formed in March 2014 and equally owned by the two companies, will design, procure, build and sell offshore wind power plants, Mitsubishi Heavy said in a statement to the Tokyo Stock Exchange.

SEB climbed 4.3 percent to 65.66 euros. The maker of Tefal pans and Rowenta household appliances was lifted to a buy from hold at Societe Generale, which cited a recovery of sales in Europe, operating ">FTSE 100 6,525.32 -40.27 -0.61%

CAC 40 4,173.33 -13.39 -0.32%

DAX 8,629.49 -34.61 -0.40%