European stocks dropped, snapping their biggest three-day rally since June, as sales of new houses in the US unexpectedly plunged in March to an eight- month low, while data showed US manufacturing expanded at a slower than expected rate this month. Investors also awoke to news that Chinese manufacturing had contracted for a fourth consecutive month.
DUBLIN
The market was skittish and scrappy, according to dealers, and liquidity was low as investors stayed away. The Iseq closed down 0.7 per cent, as its biggest stocks, cement-maker CRH and Ryanair , declined.

Bank of Ireland , which has received buyer interest of late, succumbed to the weak mood and finished down 2 per cent, at 28 cents, at the lower end of its recent trading range.

Paper and packaging group Smurfit Kappa opened weakly and was down 3 per cent at one point during the morning, but recovered some ground in the afternoon to close at €16.80, down 0.8 per cent.

Independent News & Media fell 5.5 per cent to 16 cents. Sellers continued to circle drinks group C&C , but it closed down just 0.2 per cent at €4.39. There was also pressure on IFG , down 2.3 per cent to €1.70.
LONDON
The FTSE 100 index slipped 0.1 per cent at the close, as four stocks retreated for every three that advanced. ARM Holdings fell 2.8 per cent to 956 pence after the semiconductor designer reported slower growth in first-quarter revenue from royalties. AB Foods jumped the most in 14 years, surging 8.8 per cent to 2,962 pence, after saying that its Primark budget fashion chain will enter the US. The company said Primark, which overtook the sugar division as the biggest profit contributor last year, would open a store in Boston near the end of next year, with further stores in the northeast to follow.

Wolseley advanced 1.7 per cent to 3,417 pence after analysts at Credit Suisse recommended buying shares in the distributor of plumbing and heating products. Supermarket group Morrison fell 3.6 per cent to 196.7 pence after analysts at JPMorgan Chase reduced its price estimate for Britain's fourth-biggest supermarket chain by 14 per cent to 150 pence.
EUROPE
National benchmark indexes declined in 15 of 18 western European markets, with France's Cac 40 retreating 0.7 per cent and Germany's Dax losing 0.6 per cent. Scania dropped 5.5 per cent to 173 kroner after a shareholder rejected Volkswagen's offer for the remaining shares in the truckmaker. Alecta, which owned 2.04 per cent in the Swedish company as of March 31st, said Volkswagen's offer did not fully reflect Scania's long-term fundamental value.

Royal Vopak tumbled 7.8 per cent to €38.58. The Rotterdam-based tank-storage provider said challenging business circumstances may pull down 2014 earnings before interest, taxes, depreciation and amortisation by 5 per cent-10 per cent, from €753 million last year.

Ericsson slid 6.1 per cent to 80.95 kroner. The world's biggest maker of wireless networks reported sales that missed analysts' estimates. Ericsson said first-quarter revenue dropped about 9 per cent to 47.5 billion kroner.
US
Stocks fluctuated in early trading as investors weighed earnings from AT&T to Boeing and a home-sales gauge made an unanticipated fall. AT&T fell 3 per cent to $35.19 as more customers opted to pay full price for smartphones in exchange for lower bills in the future.

Amgen plunged 5.2 per cent to $113.80 after sales for its best-selling arthritis drug missed analysts' estimates. Netflix lost 5.3 per cent to after Amazon. com reached a deal to stream old episodes of HBO series that Netflix does not have. Amazon shares slipped 1.5 per cent. Boeing added 1.9 per cent for the biggest rise in the Dow Jones after a boost in jetliner deliveries helped profit to top forecasts. – (Additional reporting: Bloomberg)