European Shares Decline

By SARA SJOLIN

European stock markets dropped the most since October, extending losses after U.S. nonfarm payrolls saw a weaker-than-expected rise.
The Stoxx Europe 600 index slid 1.6%, to 287.13, the lowest level in more than a month. On the week, the index dropped 2.3%.
"The recovery continues, but this is a reality check showing that the pace of recovery is slower than expected," said James Ashley, senior European economist at RBC Capital Markets. "Equity markets had been pricing in a too-strong recovery and growth in the U.S., and Europe is not particularly strong. It's hard to see how you'll get returns when you have weak underlying economic dynamics."

Data from the U.S. Labor Department showed just 88,000 jobs were added to the economy in March, far short of expectations for a gain of 190,000 and the smallest increase in nine months. While the unemployment rate ticked down to 7.6% from 7.7%, it reflected fewer Americans looking for work, according to the data.
"There had been some talk that the [Federal Reserve] would start to taper off their asset purchases because the data had started to improve, but these numbers show that any such move would be premature at this stage. Right now, based on our outlook, a fairly lackluster recovery is what we should expect in the next quarters," Mr. Ashley said.
In the U.S., stocks dropped in a broad selloff.
Employment data out earlier this week, including the ADP private-payrolls report and initial jobless claims, all painted a less optimistic picture of the recovery in the labor market than expected, which had already fueled fears that Friday's data would miss expectations.
In Europe, data showed retail sales for the euro area fell 0.3% in February month on month.
Airline stocks were among hardest-hit sectors on rising fears that the bird-flu virus would affect air travel. The death toll from the H7N9 virus in China rose to four people according to authorities in Shanghai.
Air France-KLM AF.FR -7.77% slumped 7.8%, Deutsche Lufthansa LHA.XE -5.23% fell 5.2% and International Consolidated Airlines Group IAG.MC -7.31% dropped 6.9%.
The U.K.'s FTSE 100 index dropped 1.5%, to 6249.78, with bank HSBC Holdings HSBA.LN -1.80% off 1.8%. The index posted a 2.5% weekly drop.
EasyJetlost 6.4%. The budget airline said it expects a first-half pretax loss of between £60 million and £65 million ($91.4 million and $99 million), compared with the previous projections of a £50-million-to-£75-million loss.
Fashion retailer Next gave up 3.6%, as Credit Suisse CSGN.VX +0.20% cut the firm to "neutral" from "outperform."
EZJ.LN -6.38% In France, the CAC-40 index dropped 1.7%, to 3663.48, with oil company Total down 1.5%, tracking lower oil prices. The index lost 1.8% on the week.
PPR lost 4.2%, as its Gucci unit said it has made an "irrevocable" offer of €13 million ($16.8 million) to save tableware company Richard Ginori from bankruptcy.
Banks BNP Paribas BNP.FR -1.42% fell 1.4% and Crédit Agricole ACA.FR -1.56% declined 1.6%.
In Germany, the DAX index slumped 2%, to 7658.75, sending it 1.8% lower on the week.