European stocks declined for a third day, extending the biggest weekly slump in 11 months, on concern efforts by Greece, Portugal and Spain to reduce their deficits will hurt the region's economic recovery. ICAP, the world's largest broker of transactions between banks, sank the most in 16

Asian stocks dropped, dragging the MSCI Asia Pacific Index lower for the first time in three days, after Australian retail sales unexpectedly fell in December and commodity prices declined. David Jones, Australia's second-biggest department store operator, slumped 3.3 per cent. BHP