European stocks retreated from the highest level in almost five years as Carnival Corp. led travel companies lower after cutting its forecasts.

Carnival dropped 13 percent to 2,101 pence in London, the biggest decline since the Costa Concordia cruise ship ran aground off Italy in January 2012, killing 32 passengers. The cruise operator lowered its profit forecast for the second half of 2013, saying price cuts undertaken after a series of mishaps will hurt margins.

A gauge of auto companies was the worst performer among 19 industry groups in the Stoxx 600. Daimler slid 3 percent to 48.86 euros and Volkswagen AG declined 1.9 percent to 170.60 euros. Renault SA dropped 2.9 percent to 60.33 euros. The index had surged 14 percent this month before today.

Sonova Holding AG, the world's largest maker of hearing aids, retreated 3.5 percent to 100.90 Swiss francs after saying profit growth will slow. Earnings before interest, taxes and acquisition-related amortization and impairments will rise by 9 percent to 13 percent in local currencies this fiscal year, compared with a 15 percent jump in the 12 months ended March, the company said.

Marks & Spencer advanced 4.4 percent to 459.8 pence, the highest since January 2008. The U.K.'s biggest clothing retailer said it will reduce capital spending to 775 million pounds ($1.2 billion) this year and 550 million pounds next year.

FTSE 100 6,759.62 +3.99 +0.06%

CAC 40 3,998.75 -24.10 -0.60%

DAX 8,414.95 -40.88 -0.48%