European Stocks Fall on Fed Concern, China Manufacturing

European shares fell after a gauge of China manufacturing dropped more than forecast and minutes from the Federal Reserve's last meeting signaled the U.S. may reduce stimulus in coming months. U.S. stock-index futures rose and Asian shares dropped.

Atos declined 3.5 percent after an investor cut its stake in the company. Intermediate Capital Group Plc lost 3.5 percent after Numis Securities Ltd. lowered its rating on the money manager. European Aeronautic, Defence & Space Co. slid 1.2 percent after UBS AG removed it from its recommended list of stocks. Johnson Matthey Plc (JMAT) climbed 3.6 percent after reporting a profit increase in the first half of the year.

The Stoxx Europe 600 Index retreated 0.2 percent to 322.24 at 10:37 a.m. in London. Standard & Poor's 500 Index futures expiring next month gained 0.2 percent. The MSCI Asia Pacific Index lost 0.8 percent.

"There's been a lack of conviction and momentum in the European market," Michael Ingram, a market strategist at BGC Partners LP in London, said by telephone. "March is still likely in terms of the timing of a taper, but this has been a moveable feast. The data doesn't support a taper yet."

The Fed expected economic data to signal improvement in the job market and "would thus warrant trimming the pace of purchases in coming months," minutes of the U.S. central bank's Oct. 29-30 meeting showed yesterday in Washington.

China Data

A gauge of China's manufacturing activity declined for the first time in four months. The preliminary 50.4 reading for the November Purchasing Managers' Index released today by HSBC Holdings Plc and Markit Economics compared with a 50.8 median estimate from analysts surveyed by Bloomberg News. Levels above 50 indicate expansion.

In the euro-area, an index based on a survey of purchasing managers in the manufacturing industry rose to a 29-month high this month of 51.5 from 51.3 in October, London-based Markit Economics said today.

A separate report later today may show that consumer confidence in the euro area increased to minus 14 this month from minus 14.5 in October, according to the median forecast of 27 analysts in a Bloomberg survey.

The Stoxx Europe 600 Index added 0.1 percent yesterday after a report said the European Central Bank is considering a smaller-than-normal cut in the deposit rate if officials decide to take it negative. Policy makers would reduce the rate for commercial lenders who park excess cash at the ECB to minus 0.1 percent from zero, said two people with knowledge of the debate. ECB President Mario Draghi is speaking in Berlin today.

Atos Declines

Atos (ATO) dropped 3.5 percent to 62.07 euros for a fifth straight day of losses. Shareholder PAI Partners SAS is selling 8.9 million shares in the French company for 61.25 euros each.

Intermediate Capital lost 3.5 percent to 444.4 pence after it was cut to hold from add at Numis, which said that half-year results were weaker than expected. The London-based money manager reported first-half pretax profit rose to 155.3 million pounds ($250 million) from 39.6 million pounds in the same period a year earlier. The company's assets under management shrank 6 percent to 12.1 billion euros.

Intermediate Capital and Nomura Holdings Inc. agreed to set up a mezzanine debt fund in Japan, citing increased demand as the world's third-largest economy recovers.

EADS, Allianz

EADS (EAD) declined 1.2 percent to 51.54 euros. UBS said in a note that investing in the company is "less compelling" after shares rallied 77 percent in 2013 through yesterday and orders were announced following the Dubai Air Show.

Allianz SE (ALV) fell 1.6 percent to 126.40 euros. Europe's biggest insurer was cut to neutral from buy at Citigroup Inc., which says earnings growth is limited.

Johnson Matthey rose 3.6 percent to 3,206 pence, the highest price since at least May 1989. The producer of a third of all auto catalysts used to cut vehicle pollution said first-half underlying pretax profit climbed to 202.1 million pounds from 180.1 million pounds a year ago. Revenue jumped to 6.41 billion pounds from 4.89 billion pounds last year.

Daily Mail & General Trust Plc (DMGT) climbed 2.4 percent to 861 pence. The company said contribution from national newspapers to the group's revenue dropped to 36 percent this year from 43 percent in 2012 and will fall further. The publisher of Britain's second-biggest U.K. daily newspaper forecast full-year revenue will be 1.8 billion pounds, matching analysts' estimates.