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European Stocks Drop as U.S. Credit Outlook Revised to Negative

European stocks dropped the most in three weeks as Standard & Poor’s Ratings Service revised its credit outlook for the U.S. to negative and speculation escalated that Greece needs to restructure its debt.

Alpha Bank SA and Societe Generale SA led a selloff in banks, both dropping more than 3 percent. Salzgitter AG lost 5.1 percent after Goldman Sachs Group Inc. recommended that investors sell the German steelmaker. Synthes Inc. soared 5.6 percent after the company confirmed it has held talks about a possible takeover by Johnson & Johnson.