- Kerry tackles Iraq crisis
- Eurozone manufacturing activity falls
- US factory PMI rises
- US existing home sales climb
FTSE 100: -0.24%
CAC 40: -0.15%
FTSE MIB: -0.15%
IBEX 35: -0.29%
Stoxx 600: -0.18%
European stocks slumped as the Iraq crisis intensified and as a report showed a drop in Eurozone manufacturing activity.
US Secretary of State John Kerry said the country will provide "intense, sustained" support to Iraqi security forces in their fight against an extremist-led Sunni insurgency.
He said Iraq faced an "existential threat" from the Islamic State of Iraq and al-Sham (ISIS).
"The support will be intense, sustained, and if Iraq's leaders take the steps needed to bring the country together it will be effective," he said during a visit to Baghdad.
His comments came as 69 people were killed during an insurgent attack on an Iraqi convoy transporting detainees south of the capital.
In Europe, Markit's purchasing managers' index (PMI) for manufacturing declined to 51.9 from 53.4, missing expectations for a smaller drop to 52.2. However, it remained above the 50 level that indicates expansion.
In parallel, the services PMI activity index fell to 52.8 from the prior month's 53.2. Economists had forecast a slight upturn to 53.3.
The composite output index declined from 53.5 to 52.8, missing the consensus estimate for no change.
In China, the factory PMI jumped to 50.8 in June from May's final reading of 49.4, beating analysts' predictions of 49.7.
Separately, a preliminary estimate of the US manufacturing PMI showed an increase to 57.5 this month from a seasonally adjusted 56.4 in May. Analysts had predicted a fall to 56.
A National Association of Realtors report showed that previously owned home purchases increased to a 4.89m annualised rate in May after rising to a 4.66m rate the previous month. Economists had pencilled in a 4.74m annualised rate.
Alstom declined after General Electric won a bid for a $17bn purchase of the company's energy assets.
Kentz advanced after SNC-Lavalin Group agreed to buy the engineering firm.
A gauge of airlines and travel stocks, including easyJet, TUI Travel and International Consolidated Airlines (IAG), fell amid the Iraq crisis as higher oil prices
are expected to filter down. IAG's stock also took a hit from news of labour strikes at its British Airways unit.
DIA rallied on news that Carrefour will buy back its French business for an enterprise value of €600m.
Miners, including Rio Tinto and BHP Billiton, gained as commodities rose.
Sulzer slumped as Vontobel Holding reduced its earnings-per-share estimates on the pumpmaker for 2014, 2015 and 2016.
The euro dropped 0.05% to $1.3593.