European stocks dropped from a five-year high as Federal Reserve Bank of St. Louis President James Bullard said the central bank may decide to reduce bond purchases at its next policy meeting.

The Stoxx Europe 600 Index slipped 0.3 percent to 314.27 at 4:30 p.m. in London after earlier climbing as much as 0.2 percent. The equity benchmark has still risen 0.9 percent this week, extending its rally so far this year to 12 percent, as the Fed refrained from slowing the pace of its bond-buying program at its last policy meeting on Sept. 17-18.

In Germany, an INSA opinion poll published yesterday showed the opposition Social Democrats climbing one percentage point to 28 percent, 10 points behind Chancellor Angela Merkel’s Christian Democratic Union and its sister party the Christian Social Union of Bavaria. Both main groups fell short of a majority with their preferred coalition partners in the survey.

Some polls show the Free Democrats, the junior member of the governing coalition, struggling to reach the 5 percent threshold they need to enter parliament, meaning that Merkel may have to form a government with another party.

National benchmark indexes fell in 10 of the 18 western-European markets. The U.K.’s FTSE 100 slid 0.4 percent and Germany’s DAX slipped 0.2 percent. France’s CAC 40 Index added 0.1 percent.

Adidas slipped 2.9 percent to 80.23 euros after cutting the low end of its profit forecast for 2013 by 7.9 percent. The world’s second-largest sporting-goods maker said the euro’s strength would hurt its sales in the third quarter, while the move to a new distribution center in Russia would reduce the availability of products in shops.

Direct Line dropped 3.2 percent to 211 pence after RBS sold 300 million shares of the insurance company for 210 pence apiece. The bank, which is majority owned by the U.K. government, reduced its holding in Direct Line by 20 percent to 28.5 percent. RBS slipped 1.4 percent to 363.7 pence.

RWE AG retreated 3.9 percent to 24.70 euros after Germany’s second-largest utility said it will reduce its dividend. The company will pay 1 euro ($1.35) on each common and preferred share at its annual general meeting in 2014, half of what it paid this year.

U.S. stock-index futures fell as Federal Reserve Bank of St. Louis President James Bullard said a “small taper” is possible in October.

Global Stocks:

Nikkei  14,742.42 -23.76 -0.16%

Hang Seng 23,502.51 +385.06 +1.67%

FTSE  6,611.7 -13.69 -0.21%

CAC  4,201.42 -4.62 -0.11%

DAX 8,686.8 -7.38 -0.08%

Crude oil $105.77 -0.58%

Gold $1352.00 -1.26%

European stocks were little changed, near a five-year high, as investors awaited Sunday’s federal elections in Germany. U.S. index futures and Asian shares were also little changed.

The Stoxx Europe 600 Index were unchanged at 315.06 as of 9:52 a.m. in London. The equity benchmark has risen 1.2 percent this week, extending its rally so far this year to 13 percent, as the Federal Reserve refrained from reducing its monthly asset purchases.

In Germany, an INSA opinion poll published yesterday showed the opposition Social Democrats climbing one percentage point to 28 percent, 10 points behind Chancellor Angela Merkel’s Christian Democratic Union and its sister party the Christian Social Union of Bavaria. Both main groups fell short of a majority with their preferred coalition partners in the poll.

Some polls show the Free Democrats, the junior member of the governing coalition, struggling to reach the 5 percent threshold they need to enter parliament, meaning that Merkel may have to form a government with another party.

Trading in Europe may be more volatile than usual today as futures and options contracts expire in a process that some traders call quadruple witching.

The Stoxx 600 climbed to its highest level since June 2008 yesterday after the Fed said in a statement that it needs to see more evidence of lasting improvement in the U.S. economy before slowing the pace of its bond-buying program.

The European Commission publishes its gauge of euro-area consumer confidence at 4 p.m. in Brussels today. The index of household sentiment climbed to minus 14.5 in September from minus 15.6 in August, according to the median estimate of economists.

Adidas slipped 4.5 percent to 78.89 euros after cutting the low end of its profit forecast for 2013 by 7.9 percent. The world’s second-largest sporting-goods maker cited the euro’s strength, a glitch in a Russian distribution site and weakness in the global golf market.

Direct Line (DLG) lost 2.5 percent to 212.6 pence. RBS sold 300 million shares at 210 pence apiece in its third sale of a stake in the insurance company, according to a statement. The bank, which is owned by the U.K. government, now owns 28.5 percent of Direct Line. RBS dropped 1 percent to 365.2 pence.

FTSE 100 6,623.35 -2.04 -0.03%

CAC 40 4,209.23 +3.19 +0.08%

DAX 8,701.87 +7.69 +0.09%

Asian stocks traded at a four-month high as a weaker yen boosted Japanese exporters, while Indian stocks fell after the central bank unexpectedly raised its key interest rate.

Nikkei 225 14,742.42 -23.76 -0.16%

Hang Seng 23,502.51 +385.06 +1.67%

S&P/ASX 200 5,276.7 -18.85 -0.36%

Shanghai Composite 2,191.85 +6.29 +0.29%

Nikon Corp., a camera maker that gets 85 percent of sales outside Japan, climbed 6.4 percent in Tokyo.

Shiseido Co. surged 5.8 percent in Tokyo as Citigroup Inc. recommended buying shares of the cosmetics maker.

State Bank of India, the nation’s largest lender, dropped 5.6 percent.

Nikkei 225 14,766.18 +260.82 +1.80 %

Hang Seng 23,530.46 +413.01 +1.79 %

S&P/ASX 200 5,295.55 +57.41 +1.10 %

Shanghai Composite 2,191.85 +6.29 +0.29 %

FTSE 100 6,625.39 +66.57 +1.01%

CAC 40 4,206.04 +35.64 +0.85%

DAX 8,694.18 +58.12 +0.67%

DJIA 15,636.50 -40.39 -0.26%

S&P 500 1,721.64 -3.88 -0.22%

NASDAQ 3,789.38 5.74 0.15%