BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks fell in cautious trade
on Friday as U.S. rate jitters along with growing tensions between China and
Taiwan sapped investors' appetite for risk.

In economic releases, the German economy expanded as initially estimated in the
first quarter, underpinned by rebounding investment and exports, data from
Destatis revealed.

GDP expanded 0.2 percent sequentially in the first quarter, in contrast to the
0.5 percent decrease in the preceding three months.

On a yearly basis, calendar-adjusted GDP shrank 0.2 percent, the same rate as
seen in the fourth quarter and in line with the preliminary estimate.

Separately, the confidence among French manufacturers worsened unexpectedly in
May and returned to below its long-term average, monthly data from the
statistical office INSEE revealed.

The manufacturing sentiment index dropped to 99.0 in May from 100.0 in the
previous month. Economists had expected confidence to remain stable at 100.0.

Elsewhere in the U.K., official data showed retail sales declined more than
expected in April as a result of poor weather.

The retail sales volume dropped 2.3 percent on a monthly basis, following a
revised 0.2 percent drop in March. Economists had forecast a 0.5 percent drop
for April.

On a yearly basis, retail sales decreased 2.7 percent, in contrast to the 0.4
percent increase in March.

The pan European STOXX 600 dropped 0.4 percent to 519.34 after finishing
marginally higher on Thursday.

The German DAX slipped 0.3 percent, France's CAC 40 eased 0.2 percent and the
U.K.'s FTSE 100 was down 0.4 percent.

In corporate news, Spanish construction and energy conglomerate Acciona
plummeted 8 percent after a profit warning.

Intertek Group rose about 2 percent. The company backed its full-year
expectations after a strong start to the year with 7 percent growth in
like-for-like revenue.

Rheinmetall AG fell about 1 percent despite a new order win. The German
automotive and arms maker said it has received an order from a NATO customer for
the supply of 155mm artillery ammunition.



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