European stocks dropped for a seventh day, erasing earlier gains, as banks and energy companies fell. The Stoxx Europe 600 Index dropped 0.8 percent to 320.59 at 12:08 p.m. in London after climbing as much as 0.7 percent. Earlier, it lost as much as 1.2 percent as factory data from China and France missed economists’ forecasts. European stocks erased their 2014 gains yesterday, with the Stoxx 600 closing at its lowest level since Oct. 20. After rallying 13 percent from this year’s low to an almost seven-year high on Dec. 5, the index tumbled 7.9 percent in the past six days, dragged down by energy shares. “There isn’t a positive trigger to vanish the current fear of a major impact due to the drop in oil prices,� said Guillermo Hernandez Sampere, who helps manage about 130 million euros ($163 million) at MPPM EK in Eppstein, Germany. “The hope for a year-end rally is very little, too many issues need to be resolved in the near term, to switch back to risk-on mode.� Societe Generale SA and ING Groep NV slid more than 3 percent, pushing a gauge of bank shares down 1.4 percent for the worst performance among 19 industry groups on the Stoxx 600. Premier Oil Plc and Technip SA declined at least 1.8 percent, helping send a gauge of oil and gas stocks down for a seventh day. Crude extended losses, trading below $55 a barrel for the first time since May 2009, amid speculation that U.S. producers may further increase output as they battle OPEC for market share. Repsol SA (REP) dropped 3.4 percent after saying it will buy Talisman Energy Inc. for $8 per common share in a cash deal. Orange SA rose 1.3 percent after BT Group Plc started exclusive talks to acquire EE, the British wireless venture it owns with Deutsche Telekom AG, for 12.5 billion pounds ($19.6 billion). To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Namitha Jagadeesh

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