Eurostoxx 50: 2,935.11 (–10.31) Frankfurt DAX: 7,125.20 (–39.55) Paris CAC: 3,993.81 (–22.10):EUROPEAN STOCKS declined yesterday, as concern that continuing unrest in the Middle East and North Africa will harm the economy overshadowed takeover bids for Iberdrola Renovables and Tognum.

“The market is switching from a risk-off theme to a risk-on theme on a daily basis,” said Richard Hunter, head of UK equities at Hargreaves Lansdown in London.

“Investors are largely unwilling to take any long-term positions. When we see any sort of strength in the market, investors are looking to take some profits off the table.”

National benchmark indexes fell in 11 of the 18 western European markets. Reuters reported that smoke plumes were seen in an area near Libya’s Es Sider oil terminal. It was not immediately clear whether the oil terminal itself has been hit, the newswire said.

Alcatel, France’s largest telecommunications equipment maker, dropped 2.6 per cent to €3.87.

US rival Finisar yesterday forecast fourth-quarter earnings of 31 to 35 cents a share. That missed analyst estimates of 48 cents.

Tullow Oil dropped 3.2 per cent to 1,413p after the explorer reported “slower progress” in resolving a tax dispute in Uganda and full-year profit missed analyst estimates.

BHP Billiton led raw-material shares lower. BHP, the world’s largest mining company, slid 1.3 per cent to 2,383p. Rio Tinto lost 1.4 per cent to 4,088p.

E.ON declined 1.4 per cent to €22.80 after the world’s largest utility by sales said profit may fall as much as 32 per cent this year after the German government imposed a new tax on its nuclear plants and on reduced earnings from selling power and gas.

Iberdrola Renovables jumped 11 per cent to €3.04, the biggest gain since 2008, after Iberdrola agreed to buy out minority investors in its renewable energy unit. Iberdrola’s stock slipped 0.2 per cent to €5.98.

Tognum climbed 7.3 per cent to €24.90 as Daimler and Rolls-Royce offered €24 a share to purchase the German maker of heavy-duty engines. European Aeronautic, Defence and Space Co rose 1.1 per cent to €20.06 after the company returned to profit in 2010 and reinstated its dividend.

Prudential gained 4.9 per cent to 749p. – (Bloomberg)