European stocks were little changed, paring earlier losses, as banks rallied while telecommunication companies fell.

The Stoxx Europe 600 Index slipped 0.2 percent to 317.58 at the close of trading after earlier dropping as much as 0.8 percent. The Stoxx 600 has fallen 5.5 percent from its six-year high on Jan. 22 as a rout in emerging-market currencies spurred concern the global economic recovery is faltering, while the Federal Reserve went on slowing the pace of its bond buying.

A U.S. report showed factory orders fell 1.5 percent in December, less than economists had forecast. In the U.K., construction expanded at the fastest pace since August 2007 last month, Markit Economics figures showed.

National benchmark indexes gained in 11 of the 18 western-European markets today. Germany’s DAX slid 0.6 percent while France’s CAC 40 added 0.2 percent. The U.K.’s FTSE 100 lost 0.3 percent.

UBS added 5.4 percent to 18.39 Swiss francs. The bank reported net income of 917 million francs ($1.01 billion), double the 442 million-franc average estimate of 12 analysts surveyed by Bloomberg. UBS recorded a 470 million-franc tax gain in the quarter.

Banco Comercial Portugues SA advanced 12 percent to 18.1 euro cents after posting a smaller annual loss than analysts had predicted. The Portuguese lender said its loss narrowed to 740 million euros ($999 million) in 2013 from 1.2 billion euros in 2012. Banco Espirito Santo SA upgraded its rating on the shares to buy from neutral.

KPN declined 4.8 percent to 2.57 euros. The company said it would eliminate as much as 14 percent of its workforce in the Netherlands over the next three years. Fourth-quarter earnings before interest, taxes, depreciation and amortization fell 29 percent to 581 million euros, missing analysts’ estimates.

Vestas dropped 4.8 percent to 170.10 kroner. The world’s biggest wind-turbine manufacturer will sell as many as 20.4 million new shares through a private placement at market price after a two-year turnaround program dragged the company out of debt and resulted in its first quarterly profit since mid-2011. Net income in the fourth quarter of 218 million euros beat analysts’ expectations.

Global markets:

Nikkei 14,008.47 -610.66 -4.18%

Hang Seng 21,397.77 -637.65 -2.89%

FTSE 6,462.36 -3.30 -0.05 %

CAC 4,127.29 +19.54 +0.48 %

DAX 9,146.53 -39.99 -0.44 %

Crude oil: $97.09 (+0.68%)

Gold: $1250.70 (-0.73%).

European stocks dropped for a third day, extending a rout that has wiped $2.9 trillion from global equities this year. U.S stock-index futures rose, while Asian shares fell.

The Stoxx 600 fell 0.5 percent to 316.61 at 11:25 a.m. in London after earlier dropping as much as 0.8 percent. The Stoxx 600 has fallen 5.7 percent from its six-year high on Jan. 22 as a rout in emerging-market currencies spurred concern the global economic recovery is faltering, while the Federal Reserve went on slowing the pace of its bond buying.

A U.S. report may show that factory orders fell 1.1 percent in December after rising 1.8 percent in the previous month, according to the median estimate. In the U.K., construction expanded at the fastest pace since August 2007 last month, Markit Economics figures showed.

Vestas dropped 6.3 percent to 167.40 kroner. The world’s biggest wind-turbine manufacturer will sell as many as 20.4 million new shares through a private placement at market price after a two-year turnaround program dragged the company out of debt and resulted in its first quarterly profit since mid-2011. Net income in the fourth quarter of 218 million euros ($295 million) beat analysts’ expectations.

BP fell 1.5 percent to 466.8 pence. Europe’s second-largest oil company said fourth-quarter profit adjusted for one-time items and inventory changes dropped to $2.8 billion from $3.9 billion a year earlier.

UBS (UBSN) added 5.7 percent to 18.45 Swiss francs. Switzerland’s biggest bank reported net income of 917 million francs ($1.02 billion), double the 442 million-franc average estimate of analysts surveyed. UBS recorded a 470 million-franc tax gain in the quarter.

FTSE 100 6,439.73 -25.93 -0.40%

CAC 40 4,096.42 -11.33 -0.28%

DAX 9,092.65 -93.87 -1.02%

Asian stocks fell, with the regional benchmark index dropping the most in almost eight months, after data showing weaker-than-expected growth in U.S. manufacturing helped extend a rout that wiped about $2.9 trillion from the value of global equities this year.

Nikkei 225 14,008.4 -610.66 -4.18%

Hang Seng 21,479.52 -555.90 -2.52%

S&P/ASX 200 5,097.07 -90.85 -1.75%

Shanghai Composite Closed

Toyota Motor Corp., the world’s biggest carmaker that gets about a third of sales in North America, sank 5.7 percent after the yen strengthened against the dollar and the company’s U.S. sales fell more than forecast.

Japan’s Topix index slumped 4.8 percent, capping a 13 percent slump from a Jan. 8 high.

Newcrest Mining Ltd. rose 4.7 percent after gold advanced, boosting precious metal producers.