On Thursday European stocks fell from their highest level in five weeks as the Federal Reserve cut its growth forecast for the U.S. economy and a survey indicated China’s manufacturing industry may shrink for an eighth month. U.S. index futures and Asian shares also dropped.

A gauge of mining companies declined 2.8 percent for the biggest retreat of 19 industries on the Stoxx Europe 600 Index as commodity prices dropped.

The Stoxx 600 lost 0.7 percent to 247.92 at 8:58 a.m. in London, sliding from its highest level since May 11. The Stoxx 600 rose to its highest level in more than a month on Wednesday as investors speculated the Fed would extend Operation Twist to help sustain economic growth.

Fed officials predicted growth of 1.9 percent to 2.4 percent this year, down from an April forecast of 2.4 percent to 2.9 percent. Chairman Ben S. Bernanke said progress in the labor market has slowed. That signaled the Fed may add to its stimulus if the economy fails to create more jobs for 12.7 million unemployed Americans.

Greece’s new Prime Minister, Antonis Samaras, will announce the members of his government during the day after obtaining the agreement of rival political leaders to form a coalition. Samaras was sworn in as prime minister yesterday, the country’s fourth premier since November, after his New Democracy party won a June 17 election with almost 30 percent of the vote.

Japan stocks rose a second day on speculation the yen’s gains will slow after the U.S. Federal Reserve refrained from adding stimulus. Shares also advanced as lawmakers confirmed two economists seen to support loose monetary policy for the Bank of Japan’s board. The Nikkei 225 Stock Average gained 0.8 percent while the Topix Index advanced 0.9 percent.