European stocks close: stocks declined due to losses in the airline sector

Stock indices declined due to losses in the airline sector. Deutsche Lufthansa AG shares dropped at fastest pace since September 2001.

The World Bank’s cut of the global economic growth forecast also weighed on stock markets. The World Bank lowered its global growth forecast to 2.8% from an earlier estimate of 3.2% due to a weaker outlook for the U.S., Russia and China.

The Office for National Statistics released the U.K. labour market data. The U.K. unemployment rate fell to 6.6% in the three months to April from 6.8% in the previous three months. That was the lowest level since early 2009. Analysts had expected a decline to 6.7%.

Deutsche Lufthansa AG shares dropped 14% after the company lowered its earnings forecasts for this and next year.

Vallourec SA, a steel pipe producer, slid 11% after lowering its earnings forecast for 2014.

Airbus Group shares declined 3.1% after Emirates cancelled an order for 70 A350 jets.

Indexes on the close:

Name                                   Price                                    Change                 Change %

FTSE 100                             6,838.87                               -34.68                        -0.50%

DAX                                      9,949.81                               -78.99                       -0.79%

CAC 40                                4,555.11                                -39.89                       -0.87%