European stocks close:

European stocks dropped as Germany and France disagreed on when to introduce a banking union for the euro area and a report added to concern about the strength of China’s economy.

Anglo American Plc slid 2.6 percent, contributing the most to a decline by a gauge of mining companies. CGGVeritas (GA) tumbled 5.3 percent after agreeing to buy Fugro NV (FUR)’s seismic division for 1.2 billion euros ($1.6 billion). TNT Express NV (TNTE) lost 2.6 percent as the company’s chief executive officer resigned.

The Stoxx Europe 600 Index (SXXP) fell 0.4 percent to 274.7 at the close, its largest drop since Sept. 18. Metal producers, banks and construction companies declined.

German Chancellor Angela Merkel rejected French President Francois Hollande’s appeal to activate oversight of the banking union “the earlier, the better.” The deadlock over regulation may delay into next year a key building block in resolving the single currency’s debt crisis.

In China, manufacturers and retailers are less optimistic about sales than they were three months ago. Previous economic reports showed that manufacturing, trade and retail sales slowed in the third quarter. That pointed to a seventh straight deceleration in quarterly growth and potentially the weakest annual expansion for the world’s second- largest economy in 22 years.

National benchmark indexes fell in every western-European market except Denmark and Iceland.

FTSE 100 5,838.84 -13.78 -0.24% CAC 40 3,497.22 -33.50 -0.95% DAX 7,413.16 -38.46 -0.52%