EUROPE MARKETS: European Stocks Slide For Fifth Straight Day

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Europe's benchmark stock index dropped for a fifth day on Thursday, after Chinese exports and French industrial-production data missed expectations, and investors waited for the latest policy decision from the Bank of England.

The Stoxx Europe 600 index lost 0.4% to 338.59, after closing at the lowest level since May on Wednesday.

Leading losers in the pan-European index, shares of Fugro NV tanked 19% 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.

BOE rate call

The U.K.'s FTSE 100 index fell 0.1% to 6,708.25 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.

Miners were among decliners after Chinese trade data for June surprised to the downside. BHP Billiton PLC (BHP) fell 0.3%, and Rio Tinto PLC (RIO) gave up 0.4%.

On a more upbeat note in London, Burberry Group PLC (BURBY) advanced 2% after the luxury-goods retailer reported a 12% increase in same-store sales in the first quarter.

Barratt Developments PLC climbed 1.4% as the house builder lifted its guidance for fiscal 2014 after selling the highest number of houses in six years.

Shares of Associated British Foods PLC put on 1.1%. The company said its retail brand Primark is expected to help offset the weakness from lower sugar prices and a stronger pound (GBPUSD).

Disappointing French data

Elsewhere, France's CAC 40 index lost 0.6% to 4,334.62, 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 1.4% to 20,589.34.

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 2.6% on the week and traded 0.6% lower at 9,753.87 on Thursday.

Among movers, BNP Paribas SA gave up 2% 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 1.9% 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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