European stocks fell, following yesterday's rally for the Stoxx Europe 600 Index, as a report showed that U.K. construction expanded less than forecast.

The Stoxx 600 slipped 0.5 percent to 286.96 at 4:30 p.m. in London. The equity benchmark advanced yesterday as euro-area factory output contracted in June less than estimated and Japanese manufacturers turned optimistic for the first time since the third quarter of 2011. The Stoxx 600 advanced 1.7 percent last week as China sought to ease a cash crunch. The gauge still lost 5.3 percent in June after Federal Reserve Chairman Ben S. Bernanke said the central bank could reduce stimulus measures if the U.S. economy improves in line with its forecasts.

In the U.K., a report showed that construction rose less than forecast in June. An index of activity in the industry climbed to 51, from 50.8 in May. That missed the median economist estimate for a reading of 51.2.

In the U.S., a Commerce Department release showed that orders placed with U.S. factories rose 2.1 percent in May, following a revised 1.3 percent advance in April. The median forecast of economists had called for a 2 percent gain.

National benchmark indexes retreated in 13 of the 18 western-European markets today.

FTSE 100 6,303.94 -3.84 -0.06% CAC 40 3,742.57 -24.91 -0.66% DAX 7,910.77 -73.15 -0.92%

Fresenius Medical Care slumped 8.8 percent to 49.63 euros as the U.S. government's Health and Human Services Department proposed cutting payments to kidney-dialysis centers from next year. Payments to the German company, which runs clinics offering the procedure in the U.S., may drop 9.4 percent in 2014 under the plans to reduce spending on Medicare.

Telefonica Deutschland declined 1.5 percent to 5.45 euros after Commerzbank cut the German business of Telefonica SA to hold from buy. The brokerage said that new uncertainties, including a probable spectrum auction in Europe's largest economy in the next two years, limit the shares' upside.

RWE AG and EON SE led a gauge of European utilities lower, declining 4 percent to 22.32 euros and 2.1 percent to 12.17 euros, respectively. Morgan Stanley removed RWE from the list of its best ideas. The brokerage reduced its earnings-per-share estimates for 2014-15 by as much as 13 percent, saying that Germany's second-largest power producer faces a difficult market in the near term.

Erste Group Bank AG lost 2 percent to 20.01 euros as Austria's biggest lender sold 661 million euros ($861 million) of new shares to help repay state aid in a deal that reduces the stakes of its key shareholders.

Michelin & Cie. (ML) increased 2 percent to 70.55 euros after UBS raised Europe's largest tiremaker to buy from neutral, citing improved cost positions that enable more competitive pricing and higher profits.

U.S. stock futures were little changed as investors awaited reports on U.S. factory orders and comments from Federal Reserve officials.

Global Stocks open:

Nikkei 14,098.74 +246.24 +1.78%

Hang Seng 20,658.65 -144.64 -0.70%

Shanghai Composite 2,006.56 +11.32 +0.57%

FTSE 6,270.23 -37.55 -0.60%

CAC 3,733.7 -33.78 -0.90%

DAX 7,883.92 -100.00 -1.25%

Crude oil $98.56 +0.58%

Gold $1251.40 +0.34%

Upgrades:

JPMorgan Chase (JPM) upgraded from Outperform to Strong Buy at Raymond James

Downgrades:

Other:

Goldman Sachs (GS) target raised to $169 at Evercore

European stocks retreated, following yesterday's rally for the Stoxx Europe 600 Index, as investors awaited a report on American factory orders. U.S. index futures and Asian shares climbed.

In the U.K., a report showed that construction rose in June less than forecast. An index of activity in the industry climbed to 51, from 50.8 in May. That missed the median economist estimate in a Bloomberg survey for a reading of 51.2.

Fresenius Medical Care slumped 8.7 percent to 49.70 euros as the U.S. government's Health and Human Services Department proposed cutting payments to kidney-dialysis centers from next year. Payments to the German company, which runs clinics offering the procedure in the U.S., may drop 9.4 percent in 2014 under the plans to reduce spending on Medicare. A gauge of European health-care companies declined, with Fresenius SE, which owns 94 percent of Fresenius Medical Care, sliding 3.7 percent to 91.96 euros.

Telefonica Deutschland declined 3 percent to 5.36 euros after Commerzbank cut the German business of Telefonica SA to hold from buy. The brokerage said that new uncertainties, including a probable spectrum auction in Europe's largest economy in the next two years, limit the shares' upside.

Michelin & Cie. increased 1.9 percent to 70.46 euros after UBS raised Europe's largest tiremaker to buy from neutral, citing improved cost positions that enable more competitive pricing and higher profits.

FTSE 100 6,284.25 -23.53 -0.37%

CAC 40 3,753.9 -13.58 -0.36%

DAX 7,918.81 -65.11 -0.82%

Asian stocks rose, with the regional benchmark index heading for a fifth day of gains, after U.S. manufacturing expanded faster than forecast.

Nikkei 225 14,098.74 +246.24 +1.78%

Hang Seng 20,775.35 -27.94 -0.13%

S&P/ASX 200 4,834 +123.71 +2.63%

Shanghai Composite 2,006.24 +11.00 +0.55%

Li & Fung Ltd., a supplier of toys and clothes to retailers including Wal-Mart Stores Inc., climbed 4.3 percent in Hong Kong.

Newcrest Mining Ltd., Australia's largest gold producer jumped 6.8 percent as the bullion advanced for a third day.

SK Hynix Inc., the world's second-largest maker of computer memory chips, sank 8.7 percent in Seoul after CLSA Asia Pacific Markets lowered the stock's rating.

Nikkei 225 13,852.5 175,18 1,28%

Hang Seng 20,803.29 363,21 1,78%

S & P / ASX 200 4,710.3 -92,29 -1,92%

Shanghai Composite 1,995.24 16,04 0,81%

FTSE 100 6,307.78 +92.31 +1.49%

CAC 40 3,767.48 +28.57 +0.76%

DAX 7,983.92 +24.70 +0.31%

Dow +63.82 14,973.42 +0.43%

Nasdaq +31.24 3,434.49 +0.92%

S&P +8.57 1,614.85 +0.53%