European stocks fell to a two-month low as investors weighed U.S. retail-sales and jobless-claims data to gauge whether the Federal Reserve will decide next week to pare stimulus.

The U.S. central bank may consider reducing its $85 billion of monthly bond purchases at its Dec. 17-18 meeting, according to 34 percent of economists surveyed Dec. 6 by Bloomberg, up from 17 percent in a Nov. 8 poll.

A U.S. Commerce Department report in Washington showed retail sales in the world’s largest economy rose 0.7 percent in November, the biggest gain since June. The median estimate in a Bloomberg survey estimated an increase of 0.6 percent. Separate data showed initial jobless claims increased to 368,000 in the week ended Dec. 7 from a revised 300,000 in the previous week. Economists had predicted a gain to 320,000.

Euro-area industrial production shrank 1.1 percent in October, according to a report from the European Union’s statistics office in Luxembourg. The median estimate survey predicted an expansion of 0.3 percent.

National benchmark indexes dropped in all 18 western European markets. The U.K.’s FTSE 100 slid 1 percent, France’s CAC 40 fell 0.4 percent and Germany’s DAX lost 0.7 percent.

Wood Group tumbled 9.9 percent to 718 pence, its lowest price since July 9, 2012. The U.K. oil-services provider said delays in offshore projects and weakness in its Canadian market may lead to the reduction in its 2014 engineering-unit profit.

Peugeot dropped 7.6 percent to 10.63 euros. Profit this year will take a hit of about 1.1 billion euros because of foreign-exchange swings, while savings from an alliance with General Motors Co. will be about 40 percent less than planned. Peugeot and GM expect the savings to total $1.2 billion by 2018, lower than their previous target for $2 billion by 2016. The companies dropped plans to cooperate on subcompact vehicles.

Ziggo rallied 5.4 percent to 32.50 euros, its highest price since its initial public offering in March 2012. The number of shares that changed hands in the first 90 minutes of trading was more than double of the average full-day volume of the past three months.

Fortum Oyj rose 2.4 percent to 17.25 euros, the highest price since April 2012, after saying it will sell its Finnish power-distribution business for 2.55 billion euros to Suomi Power Networks Oy. Fortum will book a one-time sales gain of as much as 1.9 billion euros.

U.S. stock futures fluctuated, as investors weighed data on retail sales and jobless claims to gauge the timing of any cuts to Federal Reserve stimulus.

Global markets:

Nikkei 15,341.82 -173.24 -1.12%

Hang Seng 23,218.12 -120.12 -0.51%

Shanghai Composite 2,202.8 -1.37 -0.06%

FTSE 6,464.82 -42.90 -0.66%

CAC 4,077.95 -8.91 -0.22%

DAX 9,033.18 -43.93 -0.48%

Crude oil $98.01 (+0.58%).

Gold $1234.90 (-1.77%).

European and Asian stocks fell to a two-month low, euro-area government bonds declined and most emerging-market currencies weakened. The yen snapped a two-day rally while nickel rose to a five-week high.

The Stoxx Europe 600 Index declined 0.6 percent and touched the lowest level since Oct. 14.

More economists are predicting the Federal Reserve will taper its stimulus as soon as next week and U.S. retail-sales data today will add to signs of growth, according to analyst estimates. Chinese policy makers meet this week to set growth targets for 2014 while central banks in Indonesia, New Zealand, South Korea and Switzerland maintained their benchmark interest rates today. European Central Bank policy maker Peter Praet said assessing sovereign-bond risks in a stress test may discourage banks from using ECB funds to load up on government debt.

According to various sources, tapering is expected between January and March, so earlier could have some negative impact,” Christoph Riniker, head of strategy research at Julius Baer Group Ltd. in Zurich, said in an interview. “Our view is that there is no year-end rally as the performance in the year was very good and investors are too optimistic at the moment.”

John Wood Group Plc plunged 11 percent after predicting that earnings from its engineering division will probably drop 15 percent in 2014.

PSA Peugeot Citroen slid 9.4 percent after saying it will take a 1.1 billion-euro ($1.5 billion) charge. The French carmaker said its partnership with General Motors Co. will generate smaller savings than it had forecast.

Ziggo NV jumped 7 percent as the Dutch broadband provider said that Liberty Global Plc has revived talks to buy the company. People familiar with the matter said the U.S. cable TV operator may make a bid before the end of this year.

FTSE 100 6,446.6 -61.12 -0.94%

CAC 40 4,076.01 -10.85 -0.27%

DAX 9,012.02 -65.09 -0.72%

European indices declined with mining shares and the financial sector posting the biggest losses. Lower oil prices after the OPEC report that demand will drop in 2015 and the political turmoil in Greece weighed on the indices. Weaker Industrial Output in China put further pressure on the markets. The FTSE 100 index is currently trading -1.27% quoted at 6,379.71 points, Germany's DAX 30 lost -1.37% trading at 9,727.80. France's CAC 40 declined by -1.33%, currently trading at 4,169.84 points.

Markets await Eurozone's Employment Change and industrial Production data published at 10:00 GMT and later in the session U.S. PPI and the Reuters/Michigan Consumer Sentiment Index due at 13:30 GMT and 14:55 GMT.

Nikkei 225 15,515.06 -96.25 -0.62%

S&P/ASX 200 5,104.25 -39.30 -0.76%

Shanghai Composite 2,204.17 -33.33 -1.49%

FTSE 100 6,507.72 -15.59 -0.24%

CAC 40 4,086.86 -4.28 -0.10%

DAX 9,077.11 -37.33 -0.41%

Dow 15,843.53 -129.60 -0.81%

Nasdaq 4,003.81 -56.68 -1.40%

S&P 500 1,782.22 -20.40 -1.13%