European equities drop for sixth straight session

Eurostoxx 50: 2,752.06 (-22.44) Frankfurt DAX: 7,060.23 (-43.02)Paris CAC: 3,837.98 (-33.94) EUROPEAN STOCKS dropped for a sixth dayyesterday, their longest losing streak since March, after FederalReserve chairman Ben Bernanke gave no hint that the central bankwill unveil a new round of stimulus.

UK stocks extended their loses as Moody's Investors Service saidthe country's Aaa credit rating will be at risk if the governmentmisses its debt reduction targets.

The Stoxx Europe 600 Index slid 1.1 per cent to 269.01.

"It looks like this correction will continue for some time untilwe have better macro news out of the US and more certainty onEurope's debt problems," said Matthias Fankhauser, a fund manager atClariden Leu in Zurich. "What Bernanke said was quite adisappointment, and reports that Moody's may change its view on theUK may put pressure on prices as some investors may trade on thisinformation," he said.

UBS fell 2.1 per cent to 15.32 Swiss francs as the FinancialTimes reported that the bank plans to raise pay to help recruit andretain senior employees following departures from its investmentbanking unit.

BHP Billiton, the world's largest mining company, dropped 2 percent to 2,295p as copper and aluminium fell for the first time infour days on the London Metal Exchange.

Rio Tinto slid 1.2 per cent to 4,147p.

Kabel Deutschland sank 5 per cent to [euro]42.23 after saying itsfull-year net loss widened as television customers taking upinternet and phone services did not make up for costs fromrefinancing debt.

Nokia Oyj declined 4.2 per cent to [euro]4.29 after SanfordBernstein reiterated its underperform rating on the stock. Shares inthe Finnish mobile phone maker have plunged 45 per cent this year.

Saab fell 8.4 per cent to 136.50 kronor, its biggest drop in morethan a year, as BAE Systems, Europe's largest defence contractor,sold its remaining stake in the Swedish weapons maker for about $253million.

BAE's shares dropped 1.1 per cent to 319.5p.

Lloyds Banking gained 2.3 per cent to 48.7p. The Britishgovernment will change the rules of its credit guarantee scheme toallow banks an early exit from the emergency support programme.

Pandora jumped 4.6 per cent to 171.60 kroner. - (Bloomberg)