European stocks close: most stocks declined after comments by St. Louis Fed President James Bullard

Most stock indices declined after comments by St. Louis Fed President James Bullard. He told Fox Business Network that the Fed' interest hike by the end of the first quarter in 2015 will be appropriate, if the U.S. economy grows 3% in the next four quarters.

The Bank of England released its financial stability report. The BoE plans to cap mortgages beginning from October. Lenders must limit the proportion of mortgages at 4.5 times income to no more than 15% of their new home loans.

The Bank of England Governor Mark Carney said the recovery in the U.K. economy is strengthening. But he added the housing market is the main risk to financial stability.

London Stock Exchange Group Plc agreed to buy Frank Russell Co. for $2.7 billion.

London Stock Exchange Group Plc shares increased 6.2% after agreeing to acquire Frank Russell Co.

Fresenius Medical Care AG climbed 3.3% after Credit Suisse Group AG raised the company's rating on the stock.

Barclays Plc shares dropped 7.0% after the Attorney General filed a securities fraud lawsuit in New York. The bank is accused of falsifying marketing materials to hide how much high-frequency traders were buying and selling.

Standard Chartered Plc slipped 4.8% after reporting its first-half operating profit could drop 20%.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,735.12 +1.50 +0.02%

DAX 9,804.9 -62.85 -0.64%

CAC 40 4,439.63 -20.97 -0.47%