European stocks slide on final day of best week

London - European stocks declined as investors assessed a rally that’s pushed equities to the biggest weekly gain of the year.

The Stoxx Europe 600 Index dropped 0.4% at 8:32 in London, mirroring a pullback in global shares.

The benchmark on Wednesday surged the most since the US election as hawkish comments by Federal Reserve officials boosted bets for a rate increase this month. That’s helped the gauge head toward a weekly rise of 1.2%, the best since mid-December.

"We’ve seen a little bit of a pullback overnight in Asia after this week’s gains and a lower US close yesterday as investors indulge in a bit of profit-taking ahead of the weekend,” Michael Hewson, market analyst at CMC Markets in London, wrote in a note.

"The US remains the key driver of markets right now. Such has been the turnaround in expectations, that a rate move looks more or less a done deal."

Traders are pricing in an 88% chance of a rate increase when the Fed announces its decision on March 15, up from 40% just a week ago, Fed fund futures show.

Among shares active on corporate news, Berendsen slumped 17% after the provider of industrial laundry services forecast 2017 operating profit below estimates.

WPP dropped 5.9% after the world’s largest advertiser projected slower growth and weaker new business.