Nov. 28 (Bloomberg) -- European stocks fell, sending the Dow Jones Stoxx 600 Index toward its longest losing streak in 15 months, as a slumping dollar and a drop in orders for U.S.-made durable goods magnified concern global economic growth is slowing.

DaimlerChrysler AG and Assa Abloy AB paced the drop on concern the weakening dollar will make their goods more expensive in the U.S. and reduce the value of sales in euros.

``The weaker dollar and a faster-than-expected slowdown in the U.S. economy will weigh on earnings,'' said Farners Esparch, an analyst at Riva y Garcia SA in Barcelona, Spain, which manages $530 million. ``There is room to take profits on stocks after the rally we've had this year.'' Through Nov. 21, the Stoxx 600 gained 16 percent in 2006.

Iberdrola SA, Spain's second-biggest power company, fell after bidding 11.6 billion pounds ($22.5 billion) to buy Scottish Power Plc. Nokia Oyj, the world's largest maker of mobile phones, dropped after the company cut its outlook for profit margins.

The Stoxx 600 fell 0.2 percent to 349.91 as of 3:06 p.m. in London. The Stoxx 50 slipped less than 0.1 percent and the Euro Stoxx 50, a measure for the 12 nations sharing the euro, also decreased less than 0.1 percent.

A rally that lifted the Stoxx 600 to its highest in almost six years earlier this month has stalled on speculation that a weakening dollar will erode European exporters' earnings. The Organization for Economic Cooperation and Development today cut its forecast for global economic growth.

The dollar fell against the euro for a sixth day to its lowest since March 2005. The European currency traded at $1.3145, from $1.3133 late yesterday. The dollar also declined against the British pound and the Swiss franc.

New Forecast

The Paris-based OECD said growth among the group's 30 members will cool to 2.5 percent in 2007, its weakest in four years, from an estimated 3.2 percent this year. The 2007 forecast was below the 2.9 percent anticipated in May.

Bookings for U.S. goods made to last several years decreased 8.3 percent last month, the Commerce Department said today. Economists surveyed by Bloomberg had forecast a 5 percent decline. Indexes later pared losses after a report that U.S. home sales rose.

The report on durable goods is ``one of many signals that the U.S. economy is not in such a good shape,'' said Erwin Brunner, who oversees the equivalent of $410 million as chief executive officer of BrunnerInvest AG in Zurich.

Concern about slowing growth in the U.S. could trigger a 10 percent to 20 percent decline of stock markets in the U.S. and Europe, he added.

DaimlerChrysler, Iberdrola

National benchmarks retreated in all of western Europe's 18 markets. Germany's DAX Index, U.K.'s FTSE 100 Index and France's CAC 40 slipped 0.6 percent.

DaimlerChrysler, the maker of the Jeep and Dodge cars, fell 1.5 percent to 43.61 euros. The carmaker gets about 45 percent of its sales from the U.S.

Assa Abloy, the world's biggest lock maker, lost 2.9 percent to 132.25 kronor. The company relies on North America for 38 percent of its sales.

Iberdrola shares lost 2.6 percent to 31.94 euros after it agreed to buy Scottish Power to gain access to customers and power plants in the U.K. and North America.

Scottish Power dropped 0.8 percent to 740 pence. Iberdrola's bid amounts to 777 pence per share in cash and stock. Newspapers including El Economista reported earlier today that Iberdrola would offer 800 pence per share.

``The fact that the actual figure falls short will prove frustrating to investors,'' said Martin Slaney, head of spread- betting at GFT Global Markets in London ``After all the rumors there will also be some disappointment that it is not a full cash offer.''

Nokia, EMI

Nokia fell 2 percent to 15.21 euros. The company reduced its operating-margin forecast after combining its network unit with that of Germany's Siemens AG and as sales of cheap phones increase.

EMI Group Plc, the world's third-largest music company, jumped 11 percent to 290 pence. The company said it received a ``preliminary'' approach that may lead to an offer.

The Financial Times reported earlier EMI is in talks with buyout firms about a possible 2.5 billion-pound ($4.8 billion) bid. Private-equity firms involved may include Kohlberg Kravis Roberts & Co. and Goldman Sachs Group Inc., the FT said today.

Frontline Ltd., the world's No. 2 oil-tanker operator, declined 5.6 percent to 226 kroner. The Norwegian oil-tanker operator reported a third-quarter profit that missed analyst estimates and said the fourth quarter will be ``weaker.''

BAE, SAP

BAE Systems Plc declined 1 percent to 387 pence. Europe's largest weapons maker said talks between Saudi Arabia and the U.K. on a Eurofighter Typhoon jet order have slowed as Britain's Serious Fraud Office investigates alleged corruption in defense contracts between the two nations.

KarstadtQuelle AG jumped 4.9 percent to 20.82 euros. Germany's biggest department-store company said it may sell shares in its Neckermann catalog unit next year or seek a buyer for the division as it works to restore profit at its mail-order unit.

SAP AG, the world's largest maker of business-management software, decreased 1.5 percent to 156.05 euros. Goldman, Sachs & Co. is selling 1.3 million SAP shares for 156 euros each, traders involved in the transaction said.

Air Berlin Plc, Europe's No. 3 discount carrier, plunged 13 percent to 14.15 euros. The company cut its forecast for the year after earnings were hurt by a terrorist threat in London.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: November 28, 2006 10:13 EST