EU STOCKS drop ahead of U.S. data

European stock markets retreated on Friday ahead of the U.S. data, but most indexes headed toward weekly gains. 

Also investors speculate the European Central Bank will cut interest rates as soon as next week. 

Bank of America Corp., UBS AG and Royal Bank of Scotland Plc now forecast a cut a rate cut at this month’s meeting on Nov. 7. 

BNP Paribas SA, Societe Generale SA, JPMorgan Chase & Co. and Scotiabank predict a reduction in December, when the central bank will publish new economic projections. 

The ECB last lowered its benchmark rate on May 2 to a record 0.5%. 

The Stoxx Europe 600 index dropped 0.2% to 321.76, trimming its rise for the week to 0.5%. 

Among country-specific indexes in Europe, Germany’s DAX 30 index dropped 0.3%, retreating from an all-time high reached on Thursday. 

France’s CAC 40 index fell 0.4%, while the U.K.’s FTSE 100 index slipped 0.2%. 

The UK market remained intact to UK Markit manufacturing PMI that came in pretty much in line with market forecasts. Dara released showed the October UK manufacturing PMI edged slightly lower to 56.0 from 56.3 in September (downwardly revised from 56.7) and in line with market consensus. 

Shares of Vodafone Group PLC rose 1.9% after reports that AT&T Inc. executives are exploring a takeover of the U.K. wireless-telecom giant as soon as next year. Representatives from the two companies were not immediately available to comment. 

Shares of Air France-KLM SA dropped 3.5% after Credit Suisse cut the airline to underperform from neutral.

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