European Stocks Fall on China Interest Rates, Portugal Downgrade

European stocks declined, halting a seven-day rally, as China raised interest rates and Moody’s Investors Service cut Portugal’s credit rating to junk.

Banco Espirito Santo SA and Banco Comercial Portugues SA led Portuguese banks lower, sliding more than 5 percent. Carlsberg A/S, the owner of Russia’s biggest brewer, dropped 4.4 percent after a report that the nation may tighten regulation of alcoholic-drink sales. Scor SE, France’s largest reinsurer, lost