EUROPE MARKETS: European Stocks At Two-month Low After Weak Data

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Europe's benchmark stock index was sent back to levels not seen since May on Thursday, after disappointing French and Italian industrial-production highlighted growth concerns in the euro zone, while investors also waited for the latest policy decision from the Bank of England.

The Stoxx Europe 600 index slid 0.9% to 337.03, setting it on track for a fifth straight day in the red.

Leading losers in the pan-European index, shares of Fugro NV tanked 20% after the oil-services company issued a profit warning for the first half of the year.

Banco Espirito Santo SA tumbled 11%, adding to a 4.7% loss on Wednesday, when reports that parent company Espirito Santo International delayed coupon payments on its short-term debt sent shivers through Portugal's financial sector. Portugal's PSI index slumped 3.1% to 6,174.80.

BOE rate call

The U.K.'s FTSE 100 index fell 0.7% to 6,670.22 ahead of the monthly BOE rate decision at noon in London, or 7 a.m. Eastern Time. Analysts widely expect the central bank to keep the key lending rate at a record low 0.5% and make no changes to its 375 billion-pound ($642 billion) asset-purchase program. The pound (GBPUSD) traded at $1.7117 ahead of the decision, down from 1.715 late Wednesday.

Miners were among decliners after Chinese trade data for June surprised to the downside. BHP Billiton PLC (BHP) fell 1%, and Rio Tinto PLC (RIO) gave up 1.3%.

On a more upbeat note in London, Burberry Group PLC (BURBY) advanced 1.8% after the luxury-goods retailer reported a 12% increase in same-store sales in the first quarter.

Disappointing French data

Elsewhere, France's CAC 40 index lost 1% to 4,317.26, after May industrial production data for the country dropped unexpectedly, with manufacturing output sinking 2.3%.

Industrial output data out of Italy were also disappointing, showing production declined 1.2% in May on the month, marking the biggest slide since November 2012. The FTSE MIB index slumped 1.6% to 20,529.91.

The data reports come after German data earlier this week came in on the weak side, stirring concerns of a growth slowdown in Europe.

Germany's DAX 30 index is so far down 3.2% on the week and traded 1.2% lower at 9,694.11 on Thursday.

Among movers, BNP Paribas SA gave up 2.1% after the French bank late Wednesday pleaded guilty in U.S. federal court to a criminal charge over its dealings with sanctioned countries.

Shares of Telecom Italia SpA gained 1.3% after J.P. Morgan Cazenove lifted the company to overweight from neutral, with the analysts saying it remains exposed to consolidation upside in both Italy and Brazil.

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