European stocks fell the most since June, extending the Stoxx Europe 600 Index’s weekly drop, as investors assessed a tumble in emerging-market currencies amid concern Federal Reserve tapering is hurting growth.

The Stoxx 600 slid 2.4 percent to 324.75 at the close of trading, for a weekly loss of 3.3 percent. Emerging-market stocks extended their weekly drop today as currencies from commodity-exporting countries that depend on Chinese demand sank the most in five years.

European stocks declined 1 percent yesterday, the biggest drop since Dec. 3, as a report showed manufacturing in China probably contracted this month. In the U.S., applications for unemployment benefits rose in the latest week while purchases of previously-owned homes climbed less in December than projected.

The MSCI Emerging Markets Index has lost about 10 percent since the Fed signaled in May that it could start scaling back bond purchases that boosted demand for higher-yielding assets. A Bloomberg gauge tracking 20 emerging-market currencies slid to the lowest level since 2009 today.

National benchmark indexes fell in all 18 western European markets. The U.K.’s FTSE 100 slipped 1.6 percent, Germany’s DAX lost 2.5 percent and France’s CAC 40 retreated 2.8 percent.

In Germany, the yield on 10-year government bonds fell to the lowest level since August as concern growth in emerging markets is slowing boosted demand for the safest assets.

BBVA, which controls Turkiye Garanti Bankasi AS, Turkey’s largest lender by market value, and a bank in Argentina, declined 5.1 percent to 8.85 euros. Banco Santander SA, which earns about a quarter of its profit from Brazil, fell 3.5 percent to 6.34 euros.

Novartis dropped 3 percent to 71.50 Swiss francs. The drugmaker will seek another review of Serelaxin after the European Medicines Agency’s Committee for Medicinal Products for Human Use recommended against its approval for treating acute heart failure.

Syngenta AG retreated 4.7 percent to 334.70 francs as the National Grain & Feed Association and North American Export Grain Association asked the maker of crop chemicals to halt sales of two types of genetically modified corn seeds in the U.S. that have not been approved in China.

Celesio advanced 3.7 percent to 24.91 euros. McKesson, the largest U.S. drug distributor, will acquire Celesio just 10 days after a tender offer at the same price of 23.50 euros a share failed to reach the 75 percent threshold for the deal to go through. McKesson yesterday said it bought Celesio convertible bonds from hedge fund Elliott Management Corp., giving it more than 75 percent ownership of Celesio’s shares.

U.S. stock-index futures retreated, amid a selloff in emerging-market equities and currencies.

Globalmarkets:

Nikkei 15,391.56 -304.33 -1.94%

Hang Seng 22,450.06 -283.84 -1.25%

Shanghai Composite 2,054.39 +12.21 +0.60%

FTSE 6,707.13 -66.15 -0.98%

CAC 4,216.5 -64.46 -1.51%

DAX 9,514.18 -116.86 -1.21%

Crude oil $97.21 (-0.11%)

Gold $1265.70 (+0.27%).

European stocks dropped significantly , continuing its decline yesterday , as market participants are waiting for statements by heads of the Central Bank at the World Economic Forum. Futures on U.S. stock indexes and Asian shares also fell .

Little impact on the bidding had Britain report , which showed that the number of approved applications for mortgage loans rose in December to a level of 46,521 units, compared with a revised figure for November at 45,394 units. It is worth noting that, according to the average forecast of experts for this indicator would grow to reach 47.2 thousand to 45.0 thousand , which was originally reported last month .

Furthermore, it became known that the volume of new mortgage loans in December was 38 percent higher than in the same month in 2012 , and the total amount of loans approved last year was higher than in any year since 2008 .

"The latest data provide further evidence of more active housing market , fueled by growing consumer confidence and public support for the scheme , such as help for buying ," said the head of the statistical department BBA David Dooks .

Stoxx 600 index fell 0.6 percent , increasing weekly decline to 1.5 percent . We add that the sensor increased by 0.8 percent this year , as the World Bank and the International Monetary Fund raised its growth forecasts for the world economy.

Novartis shares fell 1.4 percent, after it became known that the pharmaceutical company will seek a replacement drug for the treatment of acute heart failure , as their drug Serelaxin not been approved by the European Medicines Agency Committee for Medicinal Products .

Cost Syngenta AG decreased by 3.1 percent , against the background of the two groups were asked to grain chemical manufacturer to stop selling two types of genetically modified corn seed in the U.S. that have not been approved in China.

Celesio shares rose 5.4 percent as the company McKesson - the largest distributor of drugs in the U.S. , said it will acquire Celesio just 10 days after a failed tender offer.

At the current moment

FTSE 100 6,699.02 -74.26 -1.10 %

CAC 40 4,216.96 -64.00 -1.49 %

DAX 9,521 -110.04 -1.14%

Asian stocks fell, with the regional benchmark index set for its longest streak of weekly losses in more than 1 1/2 years, amid concern earnings growth will miss estimates on signs of weakness in China’s economy.

Nikkei 225 15,391.56 -304.33 -1.94%

Hang Seng 22,542.24 -191.66 -0.84%

S&P/ASX 200 5,240.93 -22.06 -0.42%

Shanghai Composite 2,052.83 +10.65 +0.52%

Honda Motor Co. fell 2.4 percent in Tokyo after the yen strengthened the most in four months yesterday, dragging Japanese exporters lower.

The Reject Shop Ltd. slumped 32 percent in Sydney after profit at the discount retailer missed estimates.

Newcrest Mining Ltd., an Australian gold producer, rose 3.8 percent after the precious metal surged in New York.

Nikkei 225 15,695.89 -125.07 -0.79%

Hang Seng 22,732.65 -349.60 -1.51%

S&P/ASX 200 5,262.99 -56.78 -1.07%

Shanghai Composite 2,042.18 -9.57 -0.47%

FTSE 100 6,773.28 -53.05 -0.78%

CAC 40 4,280.96 -44.02 -1.02%

DAX 9,631.04 -89.07 -0.92%

Dow 16,197.41 -175.93 -1.07%

Nasdaq 4,218.87 -24.13 -0.57%

S&P 500 1,828.47 -16.39 -0.89%