European stocks dropped, following their biggest annual advance since 2009, as utilities declined, while a report showed U.S. manufacturing slowed last month.

The Stoxx Europe 600 Index slipped 0.7 percent to 325.98 at 4:30 p.m. in London, their largest decline in two weeks. Global equities soared by $9.6 trillion in 2013 as central-bank bond buying helped the U.S. economy gain momentum, while the euro area emerged from recession.

In the U.S., the Institute for Supply Management’s manufacturing index slipped to 57 in December from 57.3 in November, which was its highest level in more than two years. Figures greater than 50 mean that activity expanded.

Final readings today confirmed that manufacturing in the euro zone expanded last month at the fastest pace since May 2011, while output in Germany, the currency bloc’s largest economy, expanded for a sixth consecutive month. French manufacturing contracted for a 22nd consecutive month.

National benchmark indexes fell in 12 of the 17 western-European markets that opened today.

FTSE 100 6,717.91 -31.18 -0.46% CAC 40 4,227.28 -68.67 -1.60% DAX 9,400.04 -152.12 -1.59%  

RWE slipped 3.5 percent to 25.68 euros after Handelsblatt reported that the German utility will seek approval at its annual general meeting on April 16 to raise capital by as much as 10 percent. The newspaper cited unidentified people close to the company’s supervisory board. RWE spokesman Michael Murphy told Bloomberg News that the utility does not plan a capital increase for the forseeable future.

CGG lost 2.9 percent to 12.21 euros as UBS lowered its rating on the stock to neutral from buy and reduced its estimate for 2013 earnings before interest and taxes to $392 million from $504 million. UBS analyst Caroline Hickson said the company’s presentation to investors and analysts in December failed to reassure investors because of weaker-than-expected long-term targets and little guidance for 2014.

Fiat rallied 16 percent to 6.92 euros. The Italian carmaker said it will pay a United Auto Workers retiree health-care trust $1.75 billion in cash for the stake when the deal closes, which Fiat expects by Jan. 20. Chrysler will contribute $1.9 billion through a special dividend, as well as paying the trust $700 million in four annual installments, according to a statement.

Exor SpA, which owns a 30 percent stake in Fiat, advanced 4.5 percent to 30.20 euros, the shares’ biggest increase in almost six months.

Polymetal International Plc and Fresnillo Plc, which own silver and gold mines, added 1.7 percent to 584.5 pence and 1.3 percent to 755 pence, respectively. Both precious metals rebounded today after completing their worst year since 1981. Randgold Resources Ltd. gained 3.8 percent to 3,934 pence, following its largest annual decline since 1998.

U.S. stock-index futures declined, as investors awaited a report on manufacturing output.

Global markets:

Hang Seng 23,340.05 +33.66 +0.14%

Shanghai Composite 2,109.39 -6.59 -0.31%

FTSE 6,737.32 -11.77 -0.17%

CAC 4,262.49 -33.46 -0.78%

DAX 9,497.49 -54.67 -0.57%

Crude oil $97.08 (-1.36%).

Gold $1220.60 (+1.52%).

European stocks declined, following their biggest annual advance since 2009, as utilities dropped, while a measure of manufacturing in the euro zone matched economists’ estimates. Asian shares also retreated.

The Stoxx Europe 600 Index slipped 0.3 percent to 327.36 at 9:22 a.m. in London after earlier rising as much as 0.3 percent. The MSCI Asia Pacific excluding Japan Index declined 0.7 percent after the Chinese government’s manufacturing gauge showed output in the world’s second-biggest economy expanded in December at a slower pace than economists had forecast.

Global equities soared by $9.6 trillion in 2013 as central-bank bond buying helped the U.S. economy gain momentum, while the euro area emerged from recession. European stocks rallied 17 percent in 2013. Their biggest increase since 2009 sent the Stoxx Europe 600 Index to 15.4 times its constituents’ projected earnings, up from 12.7 times at the beginning of 2013.

Final readings today confirmed that manufacturing in the euro zone expanded last month at the fastest pace since May 2011, while output in Germany, the currency bloc’s largest economy, expanded for a sixth consecutive month. In the U.S., the Institute for Supply Management’s manufacturing index probably slipped in December from its highest level in more than two years, economists surveyed by Bloomberg projected. The ISM publishes the data at 10 a.m. New York time.

RWE AG slipped 1.7 percent after Handelsblatt reported that the German utility may ask shareholders to give it the option to raise capital.

CGG SA slipped 1.6 percent after UBS AG lowered its rating on the surveyor of oilfields.

Fiat SpA rallied the most in more than four years after the carmaker agreed to buy the remaining stake in Chrysler Group LLC, enabling the Italian and U.S. companies to merge.

FTSE 100 6,713.2 -35.89 -0.53%

CAC 40 4,245.99 -49.96 -1.16%

DAX 9,496.03 -56.13 -0.59%

Asian stocks dropped, with a regional benchmark index retreating from a three-week high, after gauges of manufacturing in China declined, underscoring challenges for President Xi Jinping as he tries to sustain economic momentum while rolling out reforms.

Nikkei 225 Closed

Hang Seng 23,340.05 +33.66 +0.14%

S&P/ASX 200 5,367.91 +15.70 +0.29%

Shanghai Composit Closed

Industrial & Commercial Bank of China Ltd., the nation’s biggest lender, fell 1.3 percent in Hong Kong.

Hyundai Motor Co. and Kia Motors Corp. lost at least 5.1 percent after South Korea’s largest automakers forecast their weakest sales growth in eight years.

BHP Billiton Ltd., Rio Tinto Group and Fortescue Metals Group Ltd., Australia’s biggest iron-ore exporters, gained at least 0.6 percent as shipments from the world’s No. 1 exporter of the commodity resumed after a cyclone.