Eurostoxx 50:2,073.67 (–111.24) Frankfurt DAX:5,189.93 (–218.53) Paris CAC:2,974.59 (–89.73)

EUROPEAN STOCKS slid yesterday, amid concern the global economic recovery is stalling.

The Stoxx 600 retreated 2.5 per cent in London, extending its weekly drop to 3.6 per cent.

“The economic situation is getting worse,” said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH.

“It depends more than ever on what policy makers will do. As long as economic indicators remain as they are right now and emerging markets are tightening their monetary policies, the upside should be limited,” he said.

European stocks extended their declines as the European Central Bank said that executive board member Juergen Stark has resigned for “personal reasons”. Mr Stark will keep his post until the central bank appoints his successor.

Porsche tumbled 14 per cent to €37.97, its biggest decline since May 2009, as Volkswagen, Europe’s largest car maker, delayed its merger with the maker of the 911 sports car. Volkswagen’s preferred shares fell 4 per cent to €103.60.

A gauge of banks retreated 5.1 per cent as Société Générale plummeted 9.8 per cent to €17.60, its lowest price since 1995.

BNP Paribas and Barclays lost more than 7 per cent.

STMicroelectronics, Europe’s largest chipmaker, fell 4.6 per cent to €4.19.

Texas Instruments, the biggest maker of analog chips, predicted third-quarter profit of 56 cents to 60 cents a share on revenue of $3.23 billion to $3.37 billion.

Verbund, Austria’s biggest power company, sank 12 per cent to €22.20, its largest drop since at least 1991.

Deutsche Boerse slid 10 per cent to €40 after deciding against a compulsory purchase of stock from the minority of shareholders who have yet to approve the owner of the Frankfurt Stock Exchange’s combination with NYSE

Societe Television Francaise 1 sank 7.2 per cent to €9.54, its lowest price in more than two years.

Tecnicas Reunidas, a Spanish provider of engineering and construction services to the energy industry, fell 5.3 per cent to €25.10 after Goldman Sachs recommended selling the shares in new coverage. – (Bloomberg)