European stocks fell for a fifth day, erasing their gains for this year, as Goldman Sachs Group Inc. cut China's growth forecast amid concern banks at the world's second-largest economy face a cash crunch. U.S. index futures and Asian shares also dropped.
Erste Group Bank AG slid 5.3 percent as it planned a rights-share offer to repay state aid. Kazakhmys Plc tumbled to a four-year low after it backed a bid to take Eurasian Natural Resources Corp. private. Kabel Deutschland Holding AG rose 1.8 percent after Vodafone Group Plc offered to buy the German cable company for 7.7 billion euros ($10.1 billion).
The Stoxx Europe 600 Index lost 0.6 percent to 278.62 at 9:08 a.m. in London, for its longest losing streak in 13 months. The gauge is heading for a 7.4 percent drop in June, its first monthly loss since May 2012, as the Federal Reserve said last week it may end bond purchases next year if the U.S. economy strengthens in line with forecasts. Standard & Poor's 500 Index futures slid 0.6 percent and the MSCI Asia Pacific Index tumbled 1.9 percent to a six-month low.
"What we're seeing is a shift in the policy agenda of China which will take place in the next six to nine months," James Bevan, chief investment officer at CCLA Investment Management Ltd. in London, told Francine Lacqua on Bloomberg Television. "During that period, we will have continued volatility and continued uncertainty, but we'll have a real focus on exporting companies and a real appetite to constrain the domestic bubble that was property. It will be painful as the adjustment goes through."
The Stoxx 600 has slumped 10.2 percent since May 22, when Fed Chairman Ben S. Bernanke commented on stimulus paring.
China OutlookGoldman Sachs cut its estimate for expansion in China's 2013 gross domestic product to 7.4 percent from 7.8 percent, citing weaker economic indicators and tightening of financial conditions.
China's benchmark money-market rates last week climbed to a record as its central bank refrained from using open-market operations to alleviate a cash crunch. The rates fell today for a second day.
German business confidence increased in June in line with economists' estimates, a report showed. The Ifo institute's business climate index, based on a survey of 7,000 executives, rose to 105.9 this month from 105.7 in May.
Europe's largest economy lowered next year's federal budget-deficit forecast to 6.2 billion euros from 6.4 billion euros projected in March, according to a German Finance Ministry document.
Erste tumbled 5.3 percent to 20.79 euros, its lowest price since Nov. 23. Austria's biggest lender said it will increase share capital by 660 million euros in the third quarter as it planned to redeem participation capital of 1.76 billion euros.
ENRC OfferKazakhmys, which owns 26 percent of ENRC, plunged 9.2 percent to 244.6 pence, its lowest price since March 2009. ENRC founders and the Kazakh government made an offer valuing the mining company at 3.04 billion pounds ($4.7 billion). The proposal offers shareholders $2.65 in cash and 0.23 Kazakhmys shares for each ENRC share held, according to a statement. ENRC fell 1.9 percent to 212.8 pence.
Kabel Deutschland advanced 1.8 percent to 85.58 euros. Vodafone, the world's second-biggest wireless carrier, raised its bid for Kabel Deutschland to 87 euros a share from the initial 80 euros. The German cable company's board is set to recommend the cash offer, Vodafone said in a statement.
Vodafone advanced 1.3 percent to 178.15 pence.
Fiat SpA rose 2.6 percent to 5.27 euros as people familiar with the matter said the Italian carmaker may triple its dividend earned from Chrysler Group LLC. Fiat, which holds a controlling stake of 58.5 percent in Chrysler, may collect $936 million in 2013, from a previous maximum of $300 million, after the U.S. automaker refinanced its debt with new covenants that eased restrictions on dividend payment.
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