European stocks declined for the first week in five as worse-than-estimated earnings from BASF SE and ABB Ltd. raised concern the economic recovery is faltering.

Manufacturing indexes based on surveys of purchasing managers rose in the U.S. this month and unexpectedly climbed to a level that signals expansion in the euro area, London-based Markit Economics said this week. Chinese manufacturing weakened further in July, according to a preliminary survey of purchasing managers.

National benchmark indexes fell in nine of the 18 western European markets this week. The U.K.’s FTSE 100 slipped 1.1 percent, France’s CAC 40 (CAC) gained 1.1 percent and Germany’s DAX Index dropped 1 percent.

BASF retreated 5.9 percent. The world’s biggest chemical company said second-quarter earnings before interest, taxes and one-time items fell 5.4 percent to 1.83 billion euros ($2.41 billion). The average estimate of analysts in a survey had called for 1.99 billion euros.

ABB slid 4.7 percent. The largest maker of power transformers posted second-quarter net income of $763 million, missing the $779-million average estimate of analysts.

Siemens dropped 4.5 percent. The company, which makes products from power turbines to high-speed trains, said July 25 it no longer predicts an operating profit margin of at least 12 percent of sales in the 12 months through September 2014, citing “lower market expectations.”

Royal KPN NV jumped 19 percent. The largest Dutch phone company agreed to sell its E-Plus mobile-phone business in Germany to Spain’s Telefonica SA in a deal valuing the division at 8.1 billion euros. Telefonica rose 6.7 percent.

U.S. stock-index futures fell as investors weighed corporate earnings before a report on consumer confidence.

Global Stocks:

Nikkei  14,129.98 -432.95 -2.97%

Hang Seng 21,968.95 +67.99 +0.31%

Shanghai Composite 2,010.85 -10.32 -0.51%

FTSE  6,554.26 -33.69 -0.51%

CAC  3,968.22 +12.20 +0.31%

DAX 8,245.11 -53.87 -0.65%

Crude oil $104.40 -1.98%

Gold $1322.50 -0.44%

Upgrades:

Downgrades:

Facebook (FB) downgraded from Buy to Hold at Argus

Other:

European stocks were little changed as carmakers dropped, offsetting gains by companies from LVMH Moet Hennessy Louis Vuitton SA to Kering SA that reported faster quarterly sales growth. U.S. futures and Asian shares fell.

The Stoxx Europe 600 Index fell 0.1 percent to 299.2 at 10:49 a.m. in London, erasing a gain of as much as 0.7 percent. The equity benchmark has lost 0.2 percent this week. It has rallied 5.3 percent this month as the Federal Reserve said its stimulus program remained flexible.

The Stoxx 600 has rallied 20 percent since European Central Bank President Mario Draghi pledged on July 26 last year to save the euro. Yields on Spanish 10-year bonds have fallen to 4.66 percent from 7.38 percent on the day before Draghi’s speech, and the country’s IBEX 35 (IBEX) stock index has surged 39 percent.

In the U.S., a report may show consumer confidence declined this month. The Thomson Reuters/University of Michigan index of consumer sentiment dropped to 84 from 84.1 in June, according to the median estimate of economists. The initial reading for the measure was 83.9.

LVMH, which owns Louis Vuitton and Christian Dior, rallied 4.5 percent.

Kering, the owner of Gucci, advanced 4.1 percent.

Vivendi SA climbed 2 percent after selling its controlling stake in Activision Blizzard Inc. (ATVI) to the company and a group led by its chief executive officer for $8.17 billion.

ThyssenKrupp AG dropped 3.5 percent amid concern it has failed to make progress in talks to sell its plants in the Americas.

FTSE 100 6,574.45 -13.50 -0.20%      

CAC 40 3,969.71 +13.69 +0.35%

DAX 8,252.74 -46.24 -0.56%

Asian stocks fell, with the regional benchmark index paring its longest weekly winning streak since January. Japanese shares fell the most in six weeks ahead of the busiest week of earnings.

Nikkei 225 14,129.98 -432.95 -2.97%

Hang Seng 21,941.39 +40.43 +0.18%

S&P/ASX 200 5,042.03 +6.41 +0.13%

Shanghai Composite 2,010.85 -10.32 -0.51%

Toyota Motor Corp. lost 3.6 percent as the Japanese carmaker said it was outsold by General Motors Co. for the first time in six quarters.

Advantest Corp. slumped 9.7 percent in Tokyo after the chip-equipment maker posted a wider-than-expected quarterly loss.

BBMG Corp. and Shandong Chenming Paper Holdings Ltd. slid in Hong Kong and mainland trading after they were cited by the Chinese government in a list of companies that must curb capacity this year.

Nikkei 225 -1,14 14,562.93-168 0,35%

Hang Seng -0,30 -66,23 21,902.7%

S & P / ASX 200 5,035.6 0,53 0,01%

Shanghai Composite 2,021.17 -12.16 -0.60%

FTSE 100 6,587.95 -32.48 -0.49%

CAC 40 3,956.02 -6.73 -0.17%

DAX 8,298.98 -80.13 -0.96%

DJIA 15,555.60 13.37 0.09%

S&P 500 1,690.25 4.31 0.26%

NASDAQ 3,605.19 25.59 0.71%