European (SXXP) stocks declined from a 4 1/2-year high, as European Union leaders eased constraints on national budgets amid a deepening euro-area recession, while confidence among American consumers unexpectedly slid in March.

The Stoxx Europe 600 Index fell 0.4 percent to 297.46 at the close of trading. The gauge added 0.7 percent this week, for a fourth straight weekly advance, its longest winning streak since December.

National benchmark indexes fell in all of the western European markets except Switzerland.

FTSE 100 6,489.65 -39.76 -0.61% CAC 40 3,844.03 -27.55 -0.71% DAX 8,042.85 -15.52 -0.19%

In the U.S., the Thomson Reuters/University of Michigan preliminary sentiment index for March fell to 71.8 from 77.6 in February. The gauge was projected to increase to 78, according to the median estimate of economists.

Volkswagen’s preferred shares declined 2.6 percent to 160.30 euros. Waddell & Reed sold 914 million euros ($1.19 billion) of the stocks, after they touched a four-month low yesterday on the carmaker’s 2013 outlook. The 5.78 million shares were sold for 158 euros each, a 4 percent discount to yesterday’s close, Deutsche Bank AG said.

Vivendi (VIV) lost 3.3 percent to 16.10 euros. The company halted the planned sale of GVT after failing to get a satisfactory bid for the division, which had been valued at 5.2 billion euros.

Ingenico, a French provider of payment terminals and services, declined 2.9 percent to 44.64 euros. Safran’s Morpho will sell 6.6 million Ingenico shares, or a 12.57 percent stake, in a private placement, while retaining a 10.2 percent stake.

Banca Popolare dell’Emilia Romagna Scarl jumped 10 percent to 6.01 euros. Exane BNP Paribas raised its target price for the shares by 5 percent to 8.30 euros, citing the benefits of the bank’s funding structure, which is based on retail deposits.

U.S. stock-index futures were little changed, after inflation data and data on industrial production.

Global Stocks:

European stocks declined from a 4 1/2-year high, as European Union leaders eased constraints on national budgets amid a deepening euro-area recession. European Union leaders endorsed “structural” budgetary assessments, using code for granting countries such as France, Spain and Portugal extra time to bring down deficits. Still, balanced budgets remained the goal and there was no talk of large-scale spending programs or bond issues.

European political chiefs also paved the way for finance ministers to wrangle a rescue for Cyprus today as the euro area seeks progress toward a bailout that’s been batted about for nine months.

Bwin.Party sank 4.6 percent to 144.6 pence. Gross average daily revenue in January and February fell 7 percent from the final quarter of 2012 after a decision to “focus on nationally regulated markets and on high value customers,” the gambling company said.

Vivendi lost 3.5 percent to 16.07 euros. The company halted the planned sale of GVT after failing to get a satisfactory bid for the division, which had been valued at 5.2 billion euros ($6.8 billion).

Ingenico, a French provider of payment terminals and services, declined 3.6 percent to 44.35 euros. Safran’s Morpho will sell 6.6 million Ingenico shares, or a 12.57 percent stake, in a private placement, while retaining a 10.2 percent stake.

FTSE 100 6,506.76 -22.65 -0.35%

CAC 40 3,853.41 -18.17 -0.47%

DAX 8,055.77 -2.60 -0.03%

Asian stocks rose, with the regional benchmark index poised to advance for a fourth week, after U.S. jobless claims unexpectedly dropped and Japan’s upper house confirmed Haruhiko Kuroda as central bank governor.

Nikkei 225 12,560.95 +179.76 +1.45%

Hang Seng 22,533.11 -86.07 -0.38%

S&P/ASX 200 5,120.24 +88.02 +1.75%

Shanghai Composite 2,278.4 +8.12 +0.36%

Honda Motor Co., a Japanese carmaker that gets 44 percent of sales from North America, gained 2.6 percent.

Sony Corp. surged 11 percent in Tokyo after Daiwa Securities Group Inc. recommended buying shares of the consumer electronics maker.

Asian stocks outside Japan declined, led by material producers and developers, on concern policy makers in China will step up efforts to cool the property market and as Hong Kong banks raised mortgage rates.

Nikkei 225 12,381.19 +141.53 +1.16%

Hang Seng 22,619.18 +62.53 +0.28%

S&P/ASX 200 5,032.22 -60.18 -1.18%

Shanghai Composite 2,270.28 +6.31 +0.28%

BHP Billiton Ltd., the world’s biggest mining company, slid 2.3 percent in Sydney as metal futures fell.

Country Garden Holdings Co., the Chinese developer controlled by billionaire Yang Huiyan, declined 3.7 percent.

Japan’s Nikkei 255 Stock Average, the best performing developed-market benchmark gauge this year, rose after the lower house endorsed Prime Minister Shinzo Abe’s nominees for the Bank of Japan’s leadership.

European stocks advanced to a 4 1/2-year high as the region’s policy makers gathered for a two- day summit in Brussels, and as a report showed U.S. jobless claims unexpectedly fell.

The Stoxx Europe 600 Index (SXXP) gained 1.1 percent to 298.51 at 4:30 p.m. in London, the highest level since June 2008.

In the U.S., applications for jobless benefits dropped 10,000 to 332,000 in the week ended March 9 from a revised 342,000 the previous week, Labor Department figures showed today. Economists forecast 350,000 claims, according to the median estimates.

National benchmark indexes climbed in 15 of the 18 western European markets.

FTSE 100 6,529.41 +47.91 +0.74% CAC 40 3,871.58 +35.54 +0.93% DAX 8,058.37 +87.46 +1.10%

Generali (G) rose 9.4 percent to 13.33 euros. The insurer said fourth-quarter operating profit increased 12 percent from a year earlier to 928 million euros ($1.2 billion), boosted by the non- life insurance business.

HeidelbergCement advanced 2.9 percent to 56.16 euros, the highest price since October 2008. The German cement maker said debt declined more than expected last year as improved earnings covered dividends and repayments. Borrowings fell 700 million euros to 7 billion euros, while analysts had predicted 7.4 billion euros.

Booker Group Plc, Britain’s biggest food wholesaler, jumped 8 percent to 125.3 pence, the highest price in seven years, after the U.K. Competition Commission provisionally approved its acquisition of Makro Holding Ltd.

Major stock indexes rose, ending trading at session highs

U.S. stocks climbed, sending the Standard & Poor’s 500 Index toward a record high, as jobless claims unexpectedly dropped last week.

“Hitting a new high is going to send a signal to all of the fence-sitters that maybe it’s time to take a fresh look at equities,” Alan Gayle, senior strategist at RidgeWorth Capital Management, said over the phone. The Richmond, Virginia-based firm oversees about $48 billion. “The U.S. economy is reasserting itself in a leadership role in terms of overall economic momentum. The housing market is showing recovery, so this is all good for wealth. The decline in jobless claims suggests that the job market is continuing to improve.”

The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, fell 2.3 percent to 11.56. The gauge is trading near the lowest level since February 2007.

First-time jobless claims fell by 10,000 to 332,000 in the week ended March 9, the fewest since mid-January, according to data today from the Labor Department in Washington. The median forecast of economists called for an increase to 350,000. The four-week average declined to a five- year low.

Most components of DOW index closed in plus. Shares of Hewlett-Packard Company (HPQ, +2.77%) advanced more than other components. Shares of Merck & Co. Inc. (MRK, -0.92%) fell more than other components

All sectors of the S&P closed in plus. Most growts showed technology sector (+0.9%).

At the close:

Dow +82.25 14,537.53 +0.57%

Nasdaq +13.81 3,258.93 +0.43%

S&P +8.53 1,563.05 +0.55%

Change % Change Last

Nikkei 225 12,381.19 +141.53 +1.16%

Hang Seng 22,619.18 +62.53 +0.28%

S&P/ASX 200 5,032.22 -60.18 -1.18%

Shanghai Composite 2,270.28 +6.31 +0.28%

CAC 40 3,871.58 +35.54 +0.93%

DAX 8,058.37 +87.46 +1.10%

Dow +82.25 14,537.53 +0.57%

Nasdaq +13.81 3,258.93 +0.43%

S&P +8.53 1,563.05 +0.55%