European stocks fell

European stocks fell, breaking the longest streak of gains in six months, after Moody's Investors Service placed the debt rating of Spain on review for possible downgrade.

Banco Santander SA, Spain's largest bank, and Banco Bilbao Vizcaya Argentaria SA, both landed in Madrid. Inditex SA, slid 4.7 percent after the world's largest clothing retailer reported a slowdown in earnings growth. The drug decreases limited after Novartis AG said it will take total control of Alcon Inc., ending a 11-month conflict with minority shareholders.

The Stoxx Europe 600 index lost 0.3 percent to 276.94 at 3:09 pm in London, early crop a drop to 0.7 percent. The benchmark had risen in the last seven days China refrained from raising interest rates and U.S. data Retailers boosted confidence in the world's largest economy.

"We just had a huge stone thrown into the water sending waves of uncertainty through the market," said the Londoner David Buik, market strategist at BGC Partners. "Spain is a vast country, its economy is the size of Greece, Ireland and Portugal twice. Let's have a little mark down, but the markets regain their balance again."

The shares pared losses after reports showed U.S. industrial production grew more than expected in November while manufacturing in the New York region recovered more than estimated in December.

National benchmarks fell in 11 of the 18 western European markets. The French CAC 40 fell 0.3 percent, Britain's FTSE 100 rose 0.1 percent while Germany's DAX fell 0.1 percent.

Classification of Spain

Spain's IBEX fell 35 percent after Moody's placed the country Aa1 local and foreign currency government bond ratings in the review, saying Spain will have to raise about 170 million euros in 2011.

EU leaders are meeting tomorrow in Brussels to discuss the creation of a permanent mechanism to underpin the most indebted countries. At the summit on December 16 and 17 the group will face skepticism from investors about its willingness to curb sovereign debt crisis led to bailouts for Greece and Ireland, and threatens to spread.

Santander fell 1.6 percent to 8.23 euros and BBVA, the second largest bank in Spain, lost 1 percent to 7.91 euros in Madrid and Moody's warned that Spain's debt could increase due to the costs of recapitalization the banking sector.

"The substantive requirements of Spain for funding, not only for the sovereign, but also for regional governments and banks, the country is susceptible to new episodes of stress in funding," said Kathrin Muehlbronner, an analyst at Moody's, in a report published today.

Inditex, Hennes & Mauritz

Spain's Inditex fell 4.7 percent to € 59.55 in profit growth slowed in the third quarter. Net income rose 20 percent to 551 million euros ($ 734 million) in the three months ended Oct. 31, according to results announced today nine months the owner of the Zara chain. nine-month profit rose 42 percent. The stock has risen 37 percent so far this year.

Hennes & Mauritz AB fell 1.9 percent to 239.80 crowns. the second largest European clothing retailer reported a 17 percent increase in total November sales, while sales at stores open at least a year rose 8 percent.

SuperGroup Plc, owner of the clothing brand SuperDry, fell the most since its initial public offering in March, losing 14 percent to 1,396 pence, as the increased costs slowed earnings.

"We see this as a negative turn," wrote London-based Noble Implementation Sanjay Vidyarthi Ltd. analyst in a report released today. "We had previously understood that SuperGroup expected to navigate through the inlet pressures at a relatively well as a result of increased scale and bargaining power with suppliers."

Aixtron

Aixtron AG, a maker of equipment used to produce LED screens, fell 3.8 percent to € 26.58 in Frankfurt after the U.S. pairs Veeco Instruments Inc. tumbled 16 percent in U.S. trading yesterday. Citigroup Inc. downgraded the U.S. manufacturer gear for manufacturers of chips and data storage to "hold" from "buy."

Beiersdorf AG fell 6.8 percent to € 40.71 after the maker of Nivea skin cream forecast for 2011 operating earnings before interest and taxes below the level of this year as the company plans to "increase spending marketing significantly. " The company posted an investor presentation on its website today.

Novartis rose 6 percent to 56.8 Swiss francs after the company agreed to pay 12.9 billion U.S. dollars for shares of Alcon has not yet. Payment will be a combination of Novartis shares and cash if necessary, so that the value of the offer to $ 168 per share. Alcon Independent Director Committee recommended approval.

Atos Origin

Atos Origin SA soared 11 percent to € 37.66 after Germany's Siemens AG, said yesterday afternoon plans to sell its computer services to Atos 850 million euros ($ 1.14 billion) of transactions.

The Munich-based company will receive a 15 percent stake in the combined entity, as well as cash and a convertible bond and contribute some 250 million euros to aid integration. Siemens shares rose 1.6 percent to € 92.60.

Shopping Capital Group Plc rose 5.5 percent to 418.2 pence after Simon Property Group Inc. made a bid for the retail largest landowner in Britain that values the company at 2.9 million pounds ($ 4,600,000,000). Capital purchases later rejected the proposal.

Hochtief AG gained 1.2 percent to € 65.14 after Actividades de Construccion y Servicios SA raised its offer price to 9 ACS shares for every 5 shares of the German company.