European stocks retreat from 5-year high level

European stocks declined from a five-year high as investors sold stakes in companies such as Lloyds Banking Group Plc. US index futures remain unchanged, while Asian shares slid.

The Stoxx Europe 600 index slid 0.4% to 312.06 at 9:04 a.m. in London after yesterday reaching to its highest level in more than five years. Stoxx 50 index retreated 0.5%, FTSE 100 and DAX followed with 0.3% and 0.2% respectively, while the MSCI Asia Pacific Index retreated 0.5 percent from its highest level since May 22.

“After the big move we saw yesterday, it only makes sense that we see a pull-back today and that investors see it as a good time to sell,” said Dirk Thiels, who helps oversee 65 billion euros ($87 billion) as head of investment management at KBC Asset Management NV in Brussels.

In Germany, a report will probably show that investor confidence in Europe’s largest economy increased in September to the highest level since March, according to economists surveyed by Bloomberg. An index compiled by the ZEW Center for European Economic Research, which aims to predict economic developments six months in advance, rose to 45 from 42 in August, economists surveyed by Bloomberg predicted before the release at 11 a.m. in Mannheim, Germany.

In European corporate news, Lloyds lost 2.1% to 75.8 pence after UK Financial Investments Ltd. sold a 6% stake in the U.K.’s largest mortgage lender. The body, which oversees the government’s holdings in banks, said it sold 4.28 billion shares at 75 pence apiece. The transaction reduced the government’s stake in Lloyds to 32.7% from 38.7%.

A gauge of European carmakers slipped 1.4% from its highest level in at least 26 years after a report showed European car sales fell 5% in August. Volkswagen AG lost 1.9% to 179.50 euros, while PSA Peugeot Citroen and Fiat SpA dropped 3.6% to 12.18 euros and 1.4% to 6.05 euros, respectively.

Glencore Xstrata retreated 2.5% to 333.4 pence as UBS cut its rating on the stock to “neutral” from “buy”. The brokerage said that Glencore’s valuation will limit further gains by the shares until forecasts for copper and coal prices improve. The mining company trades at 18 times projected earnings, compared with 10.2 times earnings for Rio Tinto Group and 15 times for a gauge of European commodity producers.