European stocks declined, reversing earlier gains, as the European Central Bank refrained from announcing additional stimulus measures immediately even as it held its benchmark interest rate.

The Stoxx 600 dropped 1.2 percent to 291.69 at the close of trading in London, after earlier gaining as much as 0.4 percent. The benchmark gauge has still rallied 4.3 percent so far this year as central banks around the world continued their stimulus measures.

National benchmark indexes fell in all but one of the 17 western European markets open today as Stockholm closed for Sweden's National Day.

FTSE 100 6,336.11 -83.20 -1.30% CAC 40 3,814.28 -38.16 -0.99% DAX 8,098.81 -97.37 -1.19%

ECB President Mario Draghi said policy makers today discussed additional stimulus policies and stands ready to act if needed.

"We had an ample discussion of the various measures, non-standard measures that could be utilized to repair the transmission policy," Draghi told reporters in Frankfurt after the policy meeting today. "We see no reason to act on all these fronts. These are measures we keep on the shelf."

At its meeting earlier, the ECB kept its benchmark interest rate unchanged at a record low of 0.5 percent at its meeting today. Economists had predicted no rate change. The ECB also kept its deposit facility rate at zero percent.

In the U.K., the Bank of England retained its asset-purchase target at 375 billion pounds ($580 billion) and its benchmark interest rate at 0.5 percent, in line with economists' predictions. It was the central bank's last policy meeting with Mervyn King as governor.

German factory orders fell more than economists predicted in April, data showed today. Orders, adjusted for seasonal swings and inflation, decreased 2.3 percent from March, when they increased a revised 2.3 percent, the Economy Ministry in Berlin said. Economists forecast a 1 percent drop.

Barclays fell 4.1 percent to 303.3 pence, its lowest price since May 3. Sumitomo Mitsui sold a 0.66 percent stake in the British lender at 308.5 pence a share for a total value of 261 million pounds. The sale cut Sumitomo's stake to 0.66 percent.

Fiat SpA lost 6.5 percent to 5.92 euros. Trading in the stock was briefly halted in Milan. Chrysler, which is majority owned by Fiat, is recalling as many as 254,396 Jeep Compass and Patriot vehicles due to an airbag-deployment defect, the National Highway Traffic Safety Administration announced. The carmaker is also recalling 180,131 Jeep Wrangler vehicles with a possible steering fault, the U.S. regulator said on its website.

France Telecom advanced 0.5 percent to 7.50 euros. Orange secured a five-year deal with Heineken to provide a communication network for the brewer's employees in 53 countries, according to a joint statement today. The companies didn't disclose the value of the deal.

Johnson Matthey jumped 6.3 percent to 2,750 pence, its highest price since at least 1989, according to data compiled by Bloomberg. The U.K. platinum refiner and producer of auto-catalysts posted underlying pretax profit that slipped to 389.2 million pounds in the full-year ending in March, still beating the 379.1 million-pound average estimate.

RSA Insurance Group Plc (RSA), which insures cars, homes and ships in the U.K., Scandinavia and emerging markets, rose 0.8 percent to 114.1 pence. Morgan Stanley raised its rating on the stock to overweight, the equivalent of a buy recommendation, from underweight.

U.S. stock futures maintained gains after a report showed applications for unemployment benefits fell last week.

Global Stocks:

Nikkei 12,904.02 -110.85 -0.85%

Hang Seng 21,838.43 -230.81 -1.05%

Shanghai Composite 2,242.11 -28.82 -1.27%

FTSE 6,407.59 -11.72 -0.18%

CAC 3,860.41 +7.97 +0.21%

DAX 8,197.41 +1.23 +0.02%

Crude Oi $94.19 +0.48%

Crude oil $1396.80 -0.12%

European stocks were little changed, after the Stoxx Europe 600 Index yesterday dropped to a six-week low, as investors awaited policy announcements from the European Central Bank and Bank of England. U.S. index futures rose, while Asian shares fell.

The ECB will probably keep its benchmark interest rate unchanged at a record low of 0.5 percent at its meeting today, economists forecast before the announcement at 1.45 p.m. in Frankfurt. ECB President Mario Draghi will address a press conference 45 minutes later.

In the U.K., BOE holds its last policy meeting with Governor Mervyn King at the helm. The central bank will probably retain its asset-purchase target at 375 billion pounds and its benchmark interest rate at 0.5 percent, economists predicted before the decisions at noon in London.

Factory orders in Germany, Europe's largest economy, declined 2,3 percent in April after increasing 2.2 percent in the previous month.

RSA, which insures cars, homes and ships in the U.K., Scandinavia and emerging markets, rose 1.8 percent to 115.2 pence. Morgan Stanley raised its rating on the stock to overweight, the equivalent of a buy recommendation, from underweight.

Vinci SA gained 0.4 percent to 38.94 euros. Qatar Rail awarded the tunneling contract to a group led by Vinci and Qatari Diar for the construction of subway in Doha, New Civil Engineer reported citing unidentified engineers.

Barclays fell 1.8 percent to 310.5 pence, its lowest price since May 15. Nomura Holdings Inc. is selling 84.5 million shares in the lender on behalf of an investor at 308.5 pence a share to market price.

FTSE 100 6,421.45 +2.14 +0.03%

CAC 40 3,865.84 +13.40 +0.35%

DAX 8,212.76 +16.58 +0.20%

Asian stocks fell, with the regional benchmark index heading to a five-month low, after U.S. jobs and factory data missed estimates and investors speculated whether the Federal Reserve will scale back bond purchases.

Nikkei 225 12,904.02 -110.85 -0.85%

S&P/ASX 200 4,781.2 -54.01 -1.12%

Shanghai Composite 2,242.9 -28.03 -1.23%

Techtronic Industries Co., a maker of power tools that gets 73 percent of its sales in North America, dropped 3.7 percent in Hong Kong.

Tokyo Electric Power Co. tumbled 7.4 percent, leading utilities lower.

Newcrest Mining Ltd., the worst performer of Australia's 20 largest companies this year, fell 6.9 percent after Credit Suisse Group AG cut its rating amid concern it will lower output and halt expansion.

Rinnai Corp., a manufacturer of gas appliances, slumped 7.9 percent in Tokyo on a share-sale plan.

Change % Change Last

Nikkei 225 13,014.87 -518.89 -3.83%

S&P/ASX 200 4,835.21 -65.60 -1.34%

Shanghai Composite 2,270.93 -1.49 -0.07%

FTSE 100 6,419.31 -139.27 -2.12%

CAC 40 3,852.44 -73.39 -1.87%

DAX 8,196.18 -99.78 -1.20%

Dow -216.79 14,960.75 -1.43%

Nasdaq -43.78 3,401.48 -1.27%

S&P -22.49 1,608.89 -1.38%