The European markets fell for the second day on Friday after Sanofi-Aventis slipped following broker downgrades on concern of health risk associated with its Lantus diabetes treatment and UBS tumbled after forecasting a second quarter loss.

In economic news, the U.S. Commerce Department said in its report that personal income jumped 1.4% in May following an upwardly revised 0.7% increase in April. Economists had expected income to rise 0.3% compared to the 0.5% growth originally reported for the previous month.

The U.S. Commerce Department also said that personal spending rose 0.3% in May after coming in unchanged in the previous month. The moderate increase in spending came in line with economist estimates.

Crude for August delivery fell $1.14 to $69.09 a barrel on the New York Mercantile Exchange, by the time the European markets closed, tracking stock markets.

The FTSEurofirst 300 index of pan-European blue chips closed 0.13% lower at 844.59 points, while the narrower DJ Stoxx 50 index fell 0.30% to 2,087.97 points.

Around Europe, the U.K.'s FTSE 100 index fell 0.27% to 4,241.01, while France's CAC 40 index dropped 1.05% to 3,129.73 and Germany's DAX index slipped 0.50% to 4,776.47.

Sanofi-Aventis, France's biggest drugmaker, tumbled 8.1% after JPMorgan Chase downgraded the stock to neutral from overweight and Morgan Stanley cut its recommendation on the stock to equal weight from overweight.

UBS, Switzerland's second largest bank, dropped 5.4% after the company said it has raised about 3.8 billion Swiss francs selling shares and forecast a loss for the second quarter.

German fertilizer maker K+S AG slid 2.4% after larger rival Potash Corp. of Saskatchewan Inc. cut its second quarter earnings outlook.

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