European stocks declined on Wednesday, as fears about Greece resurfaced after Fitch Ratings downgraded the nation's credit rating and said a default is highly likely in the near term.
Disappointing economic data also kept investors in a jittery mood.
Eurozone private sector activity unexpectedly slipped back to contraction in February, fueling concerns that the economy may be sliding into a recession amid the region's prolonged debt crisis.
The composite output index fell to 49.7 in February from 50.4 in January. Economists expected the index to remain almost steady at 50.5.
The Euro Stoxx 50 index of eurozone bluechip stocks slipped 0.83 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, was down 0.81 percent.
The German DAX lost 0.93 percent and the French CAC 40 fell 0.52 percent. The UK's FTSE 100 dropped 0.20 percent and Switzerland's SMI lost 0.73 percent.
Lufthansa slipped 2.5 percent in Frankfurt, thus leading the decliners, as a strike in Frankfurt continued.
Peugeot jumped 12 percent after the carmaker said it is in talks about possible a tie-up with GM.
Travel firm TUI AG lost 7.6 as a stakeholder sold a significant number of shares.
Barclays raised energy company RWE to "Equalweight" from "Underweight." The stock slipped 2.3 percent.
Aareal Bank lost 6.6 percent. Deutsche Bank cut the stock to "Hold" from "Buy."
Rhoen-Klinikum lost 1.1 percent after Credit Suisse initiated the hospital operator with an "Outperform" rating.
Dental implant maker Straumann Holding AG fell 8.3 percent after missing analysts' earnings estimates.
GDF Suez lost 1 percent. HSBC cut the stock to "Underweight" from "Overweight."
Real etate developer Nexity lost 6.6 percent. The company forecast a tough year for the new homes market and a slowdown of the commercial estate market in 2012.
Schneider Electric rose 6 percent after reporting higher profit for 2011.
Hotel group Accor lost 2.4 percent. The company reported higher profit for 2011 and said it is confident on 2012.
France Telecom intends to adjust its shareholder remuneration policy, after reporting lower earnings and revenues for both the fourth quarter and full-year 2011. The stock was up 1.9 percent.
Royal Dutch Shell was up fractionally. The company has offered to acquire Cove Energy for 992.4 million pounds. Cove shares are surging close to 25 percent.
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