European Stocks Retreat as U.S. Manufacturing Report Disappoints

European stocks declined from a seven-week high as a measure of U.S. manufacturing unexpectedly slumped, outweighing gains by companies from Royal KPN NV to Vivendi SA on plans to sell assets.

Sulzer AG plunged the most since October 2008 after lowering its forecast on full-year profitability. KPN jumped to its highest price in more than five months after agreeing to sell its German mobile-phone business to Telefonica SA. Vivendi climbed the most in eight weeks after saying it has held talks to sell a 53 percent stake in Maroc Telecom SA to Emirates Telecommunications Corp.