European Stocks Retreat as RWE Leads Utilities Lower

European stocks dropped, following their biggest annual advance since 2009, as utilities declined, while a report showed U.S. manufacturing slowed last month.

RWE AG slipped 3.6 percent after Handelsblatt reported that the German utility may ask shareholders to give it the option to raise capital. CGG SA fell 3 percent after UBS AG lowered its rating on the surveyor of oilfields. Fiat SpA rallied the most since April 2009 after agreeing to buy the rest of Chrysler Group LLC, enabling the Italian and U.S. companies to merge.