European Stocks Drop; Total, Anglo American, Royal Bank Fall

European stocks retreated, paced by commodity producers as crude oil fell for a second day and copper declined in Asia.

Total SA, Europe's third-biggest oil producer, and mining company Anglo American Plc declined. Royal Bank of Scotland Group Plc, the U.K.'s second-largest bank, and BNP Paribas SA of France dropped after Morgan Stanley downgraded banks and an index showed U.K. house prices slid to the lowest in more than two years.

The Dow Jones Stoxx 600 Index lost 0.9 percent to 364.57 as of 9:07 a.m. in London, erasing the benchmark's gain for 2007. The Stoxx 50 decreased 0.8 percent, and the Euro Stoxx 50, a measure for the euro region, sank 0.8 percent.

``Share prices of the oil and mining stocks have had a great run but concerns about an economic slowdown remain and prudent investors may take profits here,'' said Emmanuel Soupre, who helps manage around $25 billion at Neuflize Gestion Paris. ``The financial crisis hasn't just hit the banks. It's across the board and we still need to quantify the full effect.''

The dollar fell against the euro on speculation data this week will show weakness in U.S. housing and consumer spending. European government bonds were little changed before an industry report that may indicate confidence among investors in Germany sank this month to its lowest in a year.

U.S. stocks yesterday declined for a fourth day, the longest losing streak in eight months, as commodity companies and technology shares retreated. Asian stocks dropped today.

National benchmarks declined in all of the 17 western European markets that were open. France's CAC 40 sank 0.8 percent, while Germany's DAX decreased 0.5 percent. The U.K.'s FTSE 100 lost 0.7 percent.
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