Wednesday, May 29, 2013

European Stocks Fall Broadly

European stocks fell Wednesday as the Organization for Economic Cooperation and Development issued a gloomy forecast for economic growth and investors worried that the U.S. Federal Reserve will soon scale back its stimulus effort.

The benchmark Stoxx 600 index fell 1.9% to 302.50. The U.K.'s FTSE 100 index lost 2% to 6627.17, shedding 135 points only a day after a 108-point rise. Germany's DAX retreated 1.7% to 8336.58, and France's CAC-40 shed 1.9% to 3974.12.

The OECD said it expects economic output in the euro zone to contract 0.6% this year, deeper than the 0.1% contraction forecast in November.