European benchmark stock indexes fell for the first week in three on concern the war in Iraq is leading consumers and businesses to cut spending, crimping sales at companies like Air France SA and Volkswagen AG.
Munich Re tumbled to its lowest in a decade after the world's largest reinsurer had a record loss in the fourth quarter and analysts said the company may need to sell new shares.
The Dow Jones Stoxx 50 slipped 0.4 percent Friday and is down 5.5 percent since last week. The Stoxx 600 Index slid 0.3 percent to 182.71, for a decline this week of 5.1 percent.
All 18 of the Stoxx 600 industry groups slid this week, led by travel and leisure stocks and insurers, both of which slumped 8 percent. The best-performing index on the Stoxx 600 was utilities, which declined 2.2 percent over the past five sessions.
European benchmark indexes also dropped this week. France's CAC 40 fell 5.5 percent, the German DAX shed 7.2 percent and the UK's FTSE 100 lost 4 percent.
Air France shed 5.5 percent to 8.74 euros yesterday. Its shares have fallen 17 since last Friday's close. The company said Wednesday that the Iraq conflict is stunting sales and in response it's cutting capacity.
KLM Royal Dutch Airlines NV lost 2.4 percent to 6.08 euros, for a drop this week of 7.6 percent. British Airways Plc and Deutsche Lufthansa AG have also announced capacity cutbacks because of the war. British Airways, Europe's biggest carrier, slid 3.6 percent to 108.5 pence, for a decline this week of 13 percent.
Volkswagen, Europe's largest carmaker, shed 3.2 percent to 30.75 euros, and has dropped 7.7 percent since last Friday's close. It said Thursday that customers are "holding back" on purchases because of the conflict in Iraq.
TUI AG dropped 7.1 percent to 9.05 euros, sending this week's decline to 18 percent. Europe's largest travel company said Monday it will step up cost cutting as tourism wanes because of the war.
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