European stocks declined, paced by ABN Amro Holding NV and DaimlerChrysler AG. The Dow Jones Stoxx 50 Index shed 0.5 percent to 2721.74 as of 8:16 a.m. in London. The Stoxx 600 slipped 0.3 percent. The Euro Stoxx 50, a benchmark for the 12 countries sharing the euro, slid 0.5 percent. Fed policy makers begin a two-day meeting and are forecast tomorrow to raise their target interest rate in the U.S. a quarter point to 1.25 percent. The U.S.-led coalition authority yesterday handed sovereignty over to Iraq, two days ahead of schedule, to thwart terrorism and give the initiative to the interim government.
ABN Amro, the Netherlands' largest bank, lost 1.5 percent to 17.84 euros. DaimlerChrysler, the world's biggest luxury-car maker, slid 1.4 percent to 38.43 euros. French Connection Group Plc tumbled 6.4 percent to 430 pence. The U.K. owner of fashion stores in Europe and the U.S. said Chairman and Chief Executive Officer Stephen Marks plans to sell as many as 9 million shares, cutting his stake to as little as 41.9 percent. France Telecom SA gained 1.7 percent to 21.60 euros. Europe's second-largest telephone company///www.bloomberg.com