European stocks declined for a second day

European stocks declined for a second day, after the Stoxx Europe 600 Index yesterday dropped the most in 10 months.

In Germany, a report showed business confidence increased for the first time in three months. The Ifo institute's business climate index, based on a survey of 7,000 executives, climbed to 105.7 in May from 104.4 in April. Economists in a survey predicted sentiment to remain unchanged.

Raiffeisen Bank International lost 1.8 percent to 26.51 euros. Herbert Stepic offered to resign as CEO of the Vienna-based lender, a day after officials began a probe into his investments through offshore accounts.

Next Plc dropped 2.3 percent to 4,583 pence. Morgan Stanley cut the U.K. retailer to underweight, a recommendation similar to sell, saying the stock is expensive. Next this week jumped to its highest price since at least 1988 and has rallied 24 percent this year.

Novo Nordisk advanced 0.9 percent to 977.50 kroner. The Danish drugmaker said tests with its liraglutide treatment showed an eight percent weight-loss for overweight patients without diabetes, compared with a 2.6 percent weight loss for a placebo. Natixis raised the stock to buy from neutral. The company said in March that the drug helped patients with type 2 diabetes lose weight.

FTSE 100 6,656.79 -40.00 -0.60%

CAC 40 3,968.9 +1.75 +0.04%

DAX 8,295.96 -56.02 -0.67%