European stocks declined as comments from Federal Reserve policy makers fueled speculation the central bank will begin tapering stimulus next month, and as companies from Salzgitter AG to Lanxess AG cut profit forecasts.

The Stoxx Europe 600 Index lost 0.4 percent to 303.5 at the close of trading. The benchmark gauge erased earlier gains of as much as 0.4 percent as Fed Bank of Atlanta President Dennis Lockhart said in an interview with Market News International that if economic growth and job creation pick up as expected, the central bank should proceed with the “removal” of its asset purchases, and as investors awaited remarks from Fed Bank of Chicago President Charles Evans.

Fed Bank of Dallas President Richard Fisher, one of the most vocal critics of quantitative easing, yesterday warned investors not to rely on stimulus.

National benchmark indexes retreated in 14 of the 18 western-European markets today. The U.K.’s FTSE 100 dropped 0.2 percent, Germany’s DAX fell 1.2 percent and France’s CAC 40 slipped 0.4 percent.

Salzgitter tumbled 12 percent to 25.27 euros, its biggest decline since March 2009. The steelmaker expects a pretax loss of about 400 million euros this year amid a slump in demand due to the deterioration of the European economy. “The ongoing recession in many European countries has put pressure on the European steel industry in the form of a structural crisis,” it said yesterday after the close of regular trading.

Lanxess retreated 4.3 percent to 44.48 euros after it cut its profit forecast for 2014 and predicted no recovery in second-half demand. The Cologne, Germany-based company said it won’t achieve its Ebitda target for next year of 1.4 billion euros. It forecast earnings for this year of 700 million euros to 800 million euros.

Munich Re, the world’s biggest reinsurer, dropped 4.9 percent to 145.25 euros after it said second-quarter profit fell 35 percent, missing analysts’ estimates, as claims arising from natural disasters rose. Net income dropped to 529 million euros from 808 million euros a year earlier, trailing the 557.1 million-euro average estimate of analysts.

InterContinental Hotels rose 6.4 percent to 2,030 pence after the world’s largest provider of hotel rooms reported first-half net income of $340 million, compared with $271 million a year earlier.

UniCredit SpA added 2.2 percent to 4.26 euros. Italy’s biggest bank said second-quarter net income climbed to 361 million euros from 169 million euros a year earlier. That was in line with the 360 million-euro average estimate of eight analysts surveyed by Bloomberg. The Milan-based bank posted a 254 million-euro return from the buyback of 4.2 billion euros of senior securities in April, according to a statement today.

Royal DSM NV gained 6.4 percent to 56.02 euros. The Dutch chemical company posted second-quarter profit that beat analyst estimates after a $3.1 billion-acquisition spree and as it cut costs. Earnings before interest, taxes, depreciation and amortization jumped 19 percent to 345 million euros. That exceeded the 333 million-euro average estimate of 11 analysts.

U.S. stock-index futures fell as investors awaited an address by Federal Reserve Bank of Chicago President Charles Evans for indications of the central bank’s policy.

Global Stocks:

Nikkei  14,401.06 +143.02 +1.00%

Hang Seng 21,923.7 -298.31 -1.34%

Shanghai Composite 2,060.5 +10.02 +0.49%

FTSE  6,627.67 +8.09 +0.12%

CAC  4,059.79 +9.82 +0.24%

DAX 8,393.89 -4.49 -0.05%

Crude oil $106.93 +0.35%

Gold $1286.20 -1.01%

Upgrades:

Downgrades:

IBM (IBM) downgraded from Neutral to Underperform at Credit Suisse

Other:

European stocks advanced for a seventh day as companies such as Credit Agricole SA posted better-than-expected earnings, outweighing cuts in profit forecasts from Salzgitter AG and Lanxess AG. U.S. index futures were little changed, while Asian shares rose.

The Stoxx Europe 600 Index added 0.2 percent to 305.29 at 11:03 a.m. in London. The benchmark gauge rose every day last week, adding 1.8 percent in the period, as European Central Bank President Mario Draghi said interest rates in the euro zone will remain low for an extended period.

Federal Reserve Bank of Dallas President Richard Fisher, one of the most vocal critics of quantitative easing, warned investors not to rely on stimulus.

“Financial markets may have become too accustomed to what some have depicted as a Fed put,” or the idea that the central bank will loosen credit after a market decline, Fisher said yesterday in a speech in Portland, Oregon.

Still, “markets continue to ponder the Federal Reserve’s next move, with some speculation that next month’s tapering of quantitative easing may slip back following the weaker than expected non-farms on Friday,” Hunter said, referring to a U.S. report that showed employers added fewer workers in July than economists had forecast.

Credit Agricole increased 1.1 percent to 7.92 euros. France’s third-largest bank by market value said profit surged in the second quarter after the sale of its unprofitable Greek unit. Net income jumped to 696 million euros from a restated 56 million euros a year earlier, the lender said in a spreadsheet posted today on its website. Earnings beat the 481.6 million-euro average estimate of analysts surveyed.

InterContinental Hotels rose 2.9 percent to 1,964 pence after the world’s largest provider of hotel rooms reported first-half net income of $340 million, compared with $271 million a year earlier.

Royal DSM NV (DSM) added 5.5 percent to 55.57 euros. The Dutch chemical company posted second-quarter profit that beat analyst estimates after a $3.1 billion-acquisition spree and as it cut costs. Earnings before interest, taxes, depreciation and amortization jumped 19 percent to 345 million euros. That exceeded the 333 million-euro average estimate of 11 analysts.

FTSE 100 6,615.14 -4.44 -0.07%       

CAC 40 4,056.58 +6.61 +0.16%

DAX 8,420.02 +21.64 +0.26%

Asian stocks outside Japan fell as stronger growth in U.S. service industries fueled speculation the Federal Reserve will soon be able to reduce economic stimulus.

Nikkei 225 14,401.06 +143.02 +1.00%

Hang Seng 21,952.78 -269.23 -1.21%

S&P/ASX 200 5,105.6 -5.65 -0.11%

Shanghai Composite 2,060.5 +10.02 +0.49%

HSBC Holdings Plc  slumped 4.6 percent in Hong Kong after earnings at Europe’s biggest bank missed analysts’ estimates.

Sony Corp. sank 4.6 percent in Tokyo after its board rejected billionaire Daniel Loeb’s call to sell part of its entertainment business.

Fonterra Shareholders Fund climbed 1.3 percent in New Zealand, recouping some of yesterday’s record decline after Russia and China halted imports of milk powder from Fonterra Cooperative Group Ltd., the world’s largest dairy exporter.

Nikkei 225 14,258.04 -208,12 -1,44%

Hang Seng 22,224.82 33,85 0,15%

S & P / ASX 200 5,111.25 -5.51 -0.11%

Shanghai Composite 2,050.48 21,06 1,04%

FTSE 100 6,619.58 -28.29 -0.43%

CAC 40 4,049.97 +4.32 +0.11%

DAX 8,398.38 -8.56 -0.10%

DJIA 15,612.10 -46.23 -0.30%

S&P 500 1,707.14 -2.53 -0.15%

NASDAQ 3,692.95 3.36 0.09%