European Stocks Fall on Outlook

European shares led declines by stocks worldwide Thursday after a measure of German business confidence fell more than economists had predicted. DaimlerChrysler and Siemens led the drop.

“Maybe the growth story has softened,” said Tim Harris, head of investment strategy for Europe at JPMorgan Private Bank in London, which manages $138 billion for wealthy clients. “It’s something to take seriously.”

Canada’s benchmark stock index surged the most among the world’s developed markets, led by lenders such as Royal Bank of Canada on a government plan to raise a dividend tax credit.

The Morgan Stanley Capital International world index, which tracks about 1,800 stocks, dropped 0.1% to 1,242.64.

Europe’s Dow Jones Stoxx 600 index lost 0.3%, slipping from Wednesday’s 3 1/2 -year high. Canada’s Standard & Poor’s/TSX composite index rose 1.3%.

U.S. exchanges were closed Thursday for the Thanksgiving holiday. The world’s biggest stock market rallied Wednesday for a sixth straight session as growing consumer confidence raised investors’ expectations for the holiday shopping season.

In Latin America, Brazil’s Bovespa index slipped, snapping a six-session winning streak. Mexico’s Bolsa index was little changed.

In Western Europe, national indexes fell in all 18 markets except Spain, Austria and Portugal. Germany’s DAX retreated 0.2%. France’s CAC 40 fell 0.5% and Britain’s FTSE 100 slid 0.4%.

Morgan Stanley’s EAFE index of developed markets in Europe, Australasia and the Far East declined 0.3%.