European Stocks Sink Most in Three Months as Debt Crisis Returns

European stocks plunged the most in three months as concern grew that Greece will default and more Spanish regions will follow Valencia in seeking a bailout.

BNP Paribas SA and HSBC Holdings Plc contributed the most to a selloff by a gauge of bank shares. BHP Billiton Ltd., the world’s largest mining company, retreated 2.8 percent as a policy maker in China warned of slowing growth. Groupe Eurotunnel SA slumped 5.8 percent after earnings missed analysts’ estimates. Royal Philips Electronics NV, the biggest lighting company, advanced 5 percent as profit increased.