Europe fell this week as economic reports in China and the U.S. signaled the global recovery may falter and as Bank of America Corp. and Citigroup Inc. reported sales that trailed analysts’ estimates.

Credit Suisse Group AG, Deutsche Bank AG and Barclays Plc declined more than 3 percent as concerns grew about the performance of some U.S. banks in the second quarter. Rio Tinto Group and BHP Billiton Ltd. led raw-material shares to the largest drop among all 19 industry groups on the benchmark Stoxx Europe 600 Index.

The Stoxx 600 fell 0.8 percent to 248.11, paring last week’s 5.4 percent rally, the biggest gain in a year. The gauge remains 8.8 percent below this year’s high on April 15 on concern that the global economic recovery is losing steam as indebted European governments slash spending and China takes steps to tame inflation.

Rio Tinto, the world’s third-largest mining company, declined 5.3 percent and BHP Billiton, the biggest, slid 2.2 percent. Copper traded on the London Metal Exchange for delivery in three months dropped 4 percent this week.

Acergy SA, which designs and delivers oil services in harsh and remote offshore environments, fell 7.6 percent. BP Plc’s Macondo well leak in the Gulf of Mexico may delay deepwater projects beyond 2011, according to Acergy Chief Executive Officer Jean Cahuzac.

Roche Holding AG declined 3.9 percent. Avastin paired with chemotherapy treatments didn’t help patients survive longer than use of the other drugs alone, according to a U.S. Food and Drug Administration staff review. FDA advisers will meet July 20 to evaluate the drug and consider whether use in breast cancer should be continued, expanded or halted.

BP surged 12 percent, a third straight weekly rally, as the company temporarily halted the flow of oil from its Macondo well and as people familiar with the matter said the company is negotiating the sale of assets in Alaska for up to $11 billion. BP said yesterday that it is “encouraged” after a pressure test that halted the spill indicated no sign of an oil leak after the first 17 hours.

Bayerische Motoren Werke AG, the world’s biggest maker of luxury cars, surged 7.7 percent after saying higher volumes in 2010 will boost profit. The carmaker forecast 2010 sales volumes will rise by about 10 percent to more than 1.4 million units, with a full-year profit margin of more than 5 percent expected for the automobiles segment.

Ferrovial SA jumped 9.3 percent after Canada Pension Plan Investment Board made a A$3.47 billion ($3.05 billion) offer for toll-road operater Intoll Group.

Piraeus Bank SA surged 16 percent as Greece’s fourth- largest lender offered to buy government stakes in two banks for 701 million euros. Piraeus Chief Executive Officer Michalis Sallas said the bank would purchase 77 percent of Agricultural Bank of Greece SA and 33 percent of Hellenic Postbank SA to create Greece’s biggest bank. Greece’s Finance Ministry said it is studying the offer.

Posted by Shayne Heffernan on Jul 18th, 2010and filed underEquities, Europe, Latest News, Markets, News & Events.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site