European stocks fell for a third day, sending the Stoxx Europe 600 Index to its lowest level in a month, with BG Group Plc and Vodafone Group Plc tumbling.

The Stoxx 600 dropped 0.8 percent. The Stoxx 600 has slumped 4.1 percent in the last three trading days after preliminary data showed Chinese manufacturing probably contracted in January for the first time in six months and Argentine policy makers allowed the peso to devalue by reducing support in the foreign-exchange market. The U.S. Federal Reserve reviews its stimulus policies this week.

In Germany, data today showed that the Ifo institute’s business climate index increased for a third month to 110.6 in January, exceeding the median prediction that forecast 110. The gauge, based on a survey of 7,000 executives, rose to 109.5 in December. A U.S. report showed that new-home sales dropped more than forecast in December. Sales fell 7 percent to a 414,000 annualized pace from a revised 445,000 rate the previous month. That compared with economists’ projections that called for a rate of 455,000.

National benchmark gauges fell in 17 of the 18 western-European markets.

FTSE 100 6,550.66 -113.08 -1.70% CAC 40 4,144.56 -16.91 -0.41% DAX 9,349.22 -42.80 -0.46%

BG Group plunged 14 percent to 1,080.5 pence, its biggest drop since October 2012, after saying reduced liquefied natural gas shipments from Egypt and U.S. forward-gas prices will hurt profit. Total earnings for 2013 will be $2.2 billion, or about 65 cents a share, BG said in a statement. The company expects production to be 590,000 to 630,000 barrels a day this year, lower than 2013’s 633,000 barrels a day.

Vodafone lost 3.7 percent to 224.1 pence. AT&T said it reserves the right to announce or participate in an offer after a six-month restricted period. Separately, people familiar with the matter said Vodafone is seeking to acquire Grupo Corporativo ONO SA as the Spanish cable operator prepares for an initial public offering.

Banco Popolare SC, Italy’s fourth-biggest bank, tumbled 15 percent to 1.29 euros for the biggest plunge since December 2008. The lender said last week it planned to sell as much as 1.5 billion euros ($2.1 billion) of shares to bolster capital.

Ziggo NV dropped 2.6 percent to 32.39 euros. Liberty Global Plc, the company controlled by billionaire John Malone, agreed to take over the Dutch broadband provider for 4.9 billion euros. Ziggo is seeking 3.7 billion euros of loans to finance its buyout, said a person with knowledge of the matter.

Ericsson AB added 1.9 percent to 76.45 kronor. The network-equipment maker and Samsung Electronics Co. settled their patent dispute and struck a new licensing deal for wireless technology in smartphones, televisions, tablets and Blu-Ray disk players. The pact will increase Ericsson’s fourth-quarter sales by 4.2 billion kronor ($652 million) and boost net income by 3.3 billion kronor initially. It also includes continuing royalty payments to Ericsson, the Stockholm-based said in a statement.

Standard & Poor’s 500 Index (SPX) futures rose, while Treasuries retreated.

Global markets:

Nikkei 15,005.73 -385.83 -2.51%

Hang Seng 21,976.1 -473.96 -2.11%

Shanghai Composite 2,033.3 -21.09 -1.03%

FTSE 6,577.43 -86.31 -1.30%

CAC 4,158.31 -3.16 -0.08%

DAX 9,375.94 -16.08 -0.17%

Crude oil $97.11 (+0.49%)

Gold $1261.20 (-0.26%).

European stocks fell for a third day, sending the Stoxx Europe 600 Index to its lowest level in a month, after a rout in emerging-market currencies spurred concern the global economic recovery is faltering. Asian shares sank, while U.S. index futures gained.

Benchmark equity gauges in Japan, Hong Kong, South Korea, Taiwan and India declined today, while emerging-market currencies weakened. Last week, currencies from Turkey to Argentina sank with developing-market stocks on signs Chinese manufacturing is slowing as the Federal Reserve reviews its stimulus policies this week.

In Germany, data today showed that the Ifo institute’s business climate index increased for a third month to 110.6 in January, exceeding the median prediction in a Bloomberg News poll that forecast 110. The gauge, based on a survey of 7,000 executives, was at 109.5 in December.

BG Group Plc plunged 15 percent after the U.K. oil and gas producer said 2013 earnings would be lower than expected.

Vodafone Group Plc lost 5 percent after AT&T Inc. said it doesn’t intend to make an offer for Europe’s largest mobile-phone operator.

Banco Popolare SC, Italy’s fourth-biggest bank, was suspended from trading in Milan after slumping the most in five years. The lender said last week it planned to sell as much as 1.5 billion euros ($2.1 billion) of shares to bolster capital.

FTSE 100 6,559.27 -104.47 -1.57%

CAC 40 4,142.39 -19.08 -0.46%

DAX 9,343.33 -48.69 -0.52%

Asian stocks declined, with the region’s benchmark index heading for its steepest loss since June, as concern that the global economic recovery is faltering spurred investors to sell riskier assets.

Nikkei 225 15,005.73 -385.83 -2.51%

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

Shanghai Composite 2,032.95 -21.44 -1.04%

Sony Corp.  fell 3 percent in Tokyo, pacing losses among Japanese exporters.

Tata Motors Ltd., India’s largest automaker by revenue, tumbled 4.7 percent in Mumbai after Managing Director Karl Slym died in Bangkok.

GCL-Poly Energy Holdings Ltd., the world’s largest maker of polysilicon, declined 4.4 percent in Hong Kong after China set a lower-than-expected target for installed solar-energy capacity this year.