EUROPE MARKETS: European Stocks Drop From Six-year High

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- After a four-day winning run, European stock markets retreated on Thursday as investors digested corporate earnings and waited for jobless claims data from the U.S.

The Stoxx Europe 600 index slipped 0.2% to 334.03, after closing at the highest level in six years on Wednesday.

Posting one of the biggest losses in the pan-European benchmark, shares of Premier Oil PLC dropped 4.3% after the oil exploration and production company said output in 2013 was in the middle of its guidance.

Shares of Associated British Foods PLC lost 3.9% after the food and retail firm said its budget clothing chain Primark posted strong sales around Christmas, but that its sugar business was weaker than expected.

Royal Ahold NV gave up 3.6% after the Dutch supermarket firm said sales declined by 4.2% in the fourth quarter due to foreign exchange effects and a loss of market share in its two key regions.

Swiss Re AG gave up 1.5% after J.P. Morgan Cazenove cut the reinsurance firm to underweight from neutral.

The country-specific indexes were mostly lower, as investors pulled back after solid gains earlier in the week ahead of the U.S. jobless data. Germany's DAX 30 index moved 0.3% lower to 9,706.82, after closing at an all-time high on Wednesday. France's CAC 40 index fell 0.3% to 4,318.37 and the U.K.'s FTSE 100 index was slightly higher at 6,822.28.

Mining firms helped lift the London benchmark after Citigroup moved its 12-month stance on the sector to bullish from neutral, marking the first upbeat call in three years. Within the industry, Citi said it prefers BHP Billiton PLC (BHP) , up 3.7%, Rio Tinto PLC (RIO), 3.1% higher, and Glencore Xstrata PLC (GLCNF), up 3%. Metals prices were, however, broadly lower.

The U.S. jobs numbers are out at 1:30 p.m. London time, or 8:30 a.m. Eastern Time.

"If the unemployment claims do show a weak number, we could certainly see the odds go skyrocketing for further tapering coming to the next Fed meeting," said Naeem Aslam, chief market analyst at Ava Trade, in emailed comments.

U.S. stock futures pointed to a lower open on Wall Street. On Wednesday, the S&P 500 index (SPX) closed at a record high after the Federal Reserve said in its "Beige Book" that the economy continues to grow at a moderate pace and the economic outlook is positive, confirming recent economic indicators.

Asia markets closed mixed.

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