Stocks: Week’s review

European stocks fell to a five-month low as reports showed U.S. payrolls increased at the slowest pace in a year and the unemployment rate unexpectedly rose, adding to weakening economic data from China and the euro area.

U.S. payrolls climbed by 69,000 last month, less than the most-pessimistic forecast in a Bloomberg News survey, after a revised 77,000 gain in April that was smaller than initially estimated, Labor Department figures showed. The median estimate called for a 150,000 May advance. The jobless rate rose to 8.2 percent from 8.1 percent, while hours worked declined.

Euro-area unemployment reached the highest on record as a deepening economic slump and budget cuts prompted companies from Spain to Italy to cut jobs.

China’s Purchasing Managers’ Index fell to 50.4 in May from 53.3 in April, the nation’s statistics bureau and logistics federation said.

National benchmark indexes fell in all of the 18 western European markets today. Germany’s DAX dropped 3.4 percent, the U.K.’s FTSE 100 slid 1.1 percent, while France’s CAC 40 declined 2.2 percent.

Preferred shares of Volkswagen AG dropped 4.1 percent to 123.75 euros, its third day of declines. Daimler and BMW fell 5.1 percent to 35.52 euros and 3.9 percent to 58.72 euros, respectively. A gauge of automakers was the worst performer of the 19 industry groups on Stoxx 600.

Anheuser-Busch InBev NV, the world’s biggest brewer, fell 3.2 percent to 53 euros after the Brazilian government raised beer taxes more than anticipated. AB InBev owns Cia. de Bebidas das Americas, Brazil’s biggest brewer and gets about 30 percent of its earnings before interest and taxes from the country.

Swatch Group AG and Cie. Financiere Richemont SA fell 4.7 percent to 355.90 francs and 6.1 percent to 52 francs as China’s manufacturing slowdown raised concerns that demand for Swiss watches will decline in the country.

U.S. stocks fell the most since November, erasing the Dow Jones Industrial Average’s 2012 advance, as American employers added the fewest workers in a year and reports signaled global manufacturing was slowing.

Equities tumbled as U.S. payrolls climbed by 69,000 last month, less than the most-pessimistic forecast. The jobless rate rose to 8.2 percent. The Institute for Supply Management’s factory index fell after reaching a 10-month high. Manufacturing output shrank in Europe and slowed in China.

Facebook Inc. fell 6.4 percent to $27.72, after yesterday posting the biggest gain since its initial public offering. The company led U.S. IPOs to their worst monthly performance since Lehman Brothers Holdings Inc. collapsed, as Europe’s debt crisis scuttled IPO plans from New York to Hong Kong.

Groupon Inc. retreated 8.9 percent to $9.69. The largest daily coupon website declined as a lockup period expired, permitting insiders to sell shares.

New York Times Co. and Gannett Co. fell as Moody’s Investors Service said the industry’s earnings will continue to shrink this year. New York Times slid 4.4 percent to $6.36. Gannett, owner of the USA Today, sank 5.6 percent to $12.33.

Gold producers jumped as signs of weakening job growth in the U.S. fueled expectations that the Fed will take further steps to spur growth, boosting the appeal of the precious metal as an inflation hedge. Newmont Mining, the largest U.S. gold producer, rallied 6.7 percent to $50.30.