European Stocks Fall as Japan Economy Fans Concern Recovery Is Faltering

Aug. 16 (Bloomberg) -- Andrew Popper, chief investment officer at SG Hambros Bank Ltd., discusses China's currency reserves and his asset allocation strategy. He talks with Francine Lacqua on Bloomberg Television's "Start Up." (Source: Bloomberg)

Aug. 16 (Bloomberg) -- Yuuki Sakurai, chief executive officer of Fukoku Capital Management in Tokyo, speaks about Japan's economy and yen. Japan’s economy grew at less than a fifth of the pace economists estimated last quarter, pushing it into third place behind the U.S. and China and adding to evidence the global recovery is faltering. Sakurai speaks with Bloomberg's Rishaad Salamat. (Source: Bloomberg)

European stocks declined, extending the biggest weekly drop in more than a month, as slower-than- forecast economic growth in Japan increased concern that the recovery may be faltering.

The benchmark Stoxx Europe 600 Index lost 0.8 percent to 253.53 at 9:30 a.m. in London. The gauge fell 1.2 percent last week after the U.S. Federal Reserve said the pace of recovery in the world’s largest economy will probably be “more modest” than forecast.

The MSCI Asia Pacific Index slipped 0.1 percent as Japan’s economy expanded at the slowest pace in three quarters, pushing it into third place behind the U.S. and China. Gross domestic product rose an annualized 0.4 percent in the second quarter, the Cabinet Office said. The median estimate of 19 economists surveyed by Bloomberg News was for growth of 2.3 percent.