LONDON, June 4 — European stocks headed for their lowest level in almost a month as the region’s bonds extended a drop and another round of talks failed to end a Greek debt stalemate.

The Stoxx Europe 600 Index slipped 0.6 per cent to 393.45 at 2.28pm in London, taking its decline from an April record to 5 per cent. It slid as much as 1.9 per cent earlier. The DAX Index tumbled 1 per cent as German 10-year securities deepened losses and a rally in the euro helped push carmakers lower.

“Sentiment-wise, irritation is currently very high,” said Benedict Goette, founder of asset-management firm Compass Capital AG in Zurich. “Many market participants are totally insecure as to where the next move will go. This means there is potential for a big move. We expect further bond market weakness. This might trigger an equity correction as well.”

Greek Prime Minister Alexis Tsipras rejected proposals by European leaders and the International Monetary Fund to help unlock more aid. The country owes the IMF four payments this month, even as its euro region bailout expires. The ASE Index slid 2.5 per cent, the most among western-European benchmarks.

All but three of 19 Stoxx 600 industries dropped, with utilities and miners slipping the most.

Daimler AG and Continental AG paced losses among auto stocks. The euro rose against the dollar after European Commission President Jean-Claude Juncker said he held long talks with Tspiras last night.

Volatile equities

The VStoxx Index of euro-area stock volatility climbed 1.5 per cent. Still, traders are betting the swings will abate when Greek worries fade. Options market data shows expectations for Euro Stoxx 50 Index volatility in the next three to six months are at their lowest levels since January.

Among stocks active on corporate news, Saipem SpA slid 9.1 per cent. Eni SpA, its largest shareholder, may weigh a share sale to address the company’s debt, Il Sole 24 Ore reported.

Deutsche Telekom AG gained 2.6 per cent. T-Mobile US Inc, owned by the German company, is in talks to merge with Dish Network Corp, the Wall Street Journal reported. Syngenta AG climbed 2.8 per cent after Reuters reported that BASF SE is weighing an offer to buy the Swiss maker of agrochemicals.

Investors are also watching US economic reports as worse- than-forecast data has stoked concern the recovery may not withstand a Federal Reserve rate increase expected this year. A release today showed fewer workers filed applications for unemployment benefits last week, and monthly payrolls data are due tomorrow. — Bloomberg