European stocks fell

European stocks fell to their lowest level in more than three months as companies including ArcelorMittal and Vinci SA reported worse-than-forecast earnings. U.S. stock futures and Asian shares also declined.

A Markit Economics purchasing managers' index of euro-zone manufacturing was unchanged in July at 51.8. The median forecast of economists called for 51.9. A reading of 50 is the dividing line between expansion and contraction. A PMI index for the U.K. fell to the lowest level in a year, while a measure of manufacturing in Italy missed estimates, posting growth at the slowest pace in eight months.

A Labor Department report at 8:30 a.m. in Washington may show U.S. non-farm payrolls increased 230,000 in July, following a 288,000 gain in June, according to the median estimate of economists surveyed by Bloomberg. The unemployment rate in the world's biggest economy probably held at 6.1 percent, the lowest level since 2008, they forecast.

A separate report may show the Thomson Reuters/University of Michigan final index of consumer confidence in July fell to 81.8, from 82.5 in June. A third release may show the Institute for Supply Management's manufacturing index increased in July.

ArcelorMittal retreated 6.2 percent to 10.66 euros. The world's largest steelmaker predicted 2014 earnings before interest, taxes, depreciation and amortization in excess of $7 billion. It had previously forecast Ebitda of around $8 billion. The company said iron ore prices fell short of its expectations. ArcelorMittal also said second-quarter Ebitda climbed to $1.76 billion from $1.7 billion a year earlier. That missed the $1.84 billion average of analyst estimates compiled by Bloomberg.

Vinci retreated 6.6 percent to 48.22 euros. Europe's biggest builder forecast a drop in 2014 revenue, compared with an earlier projection of little change. Vinci also reported first-half earnings before interest and taxes of 1.54 billion euros ($2.1 billion), missing the median analyst prediction of 1.63 billion euros.

Iliad tumbled 7.6 percent to 190.40 euros after it offered $33 per share in cash for 56.6 percent of T-Mobile. The French mobile-phone carrier said it values the remaining shares of T-Mobile at $40.50 each. T-Mobile confirmed it received a proposal from Iliad. Its parent Deutsche Telekom AG considers the offer inferior to a separate bid by Sprint Corp., a person familiar with the matter said. Deutsche Telekom advanced 2.1 percent to 12.36 euros.

Axa SA gained 1.3 percent to 17.41 euros after France's largest insurer said first-half net income surged 22 percent to 3 billion euros, boosted by improved earnings from selling life insurance and savings products. That beat the 2.7 billion-euro average analyst projection.

FTSE 100 6,639.97 -90.14 -1.34%

CAC 40 4,187.68 -58.46 -1.38%

DAX 9,213.25 -194.23 -2.06%