July 6 (Bloomberg) -- European stocks fell, led by the reinsurers Munich Re and Swiss Reinsurance Co., after UBS AG advised investors to trim their holdings of the companies.

The Dow Jones Stoxx 50 Index declined 0.3 percent to 2652.73 as of 8:43 a.m. in London. The Stoxx 600 slipped 0.3 percent and the Euro Stoxx 50, a measure for the 12 countries sharing the euro, lost 0.4 percent.

Munich Re, the world's biggest reinsurance company, slipped 1.4 percent to 86.76 euros, a sixth successive drop. It was cut to ``reduce'' from ``neutral'' at UBS. Swiss Re, the second- largest, slipped 0.6 percent to 79 Swiss francs after being cut to ``neutral'' from ``buy.'' UBS cited rising interest rates and competition as reasons for the reductions.

The mining companies BHP Billiton and Rio Tinto Group climbed as copper futures in New York had their biggest jump in about a month, tracking gains yesterday in London.

BHP, the world's biggest mining company, gained 1.2 percent to 487.25 pence. Rio Tinto, the third-largest, increased 1.1 percent to 1,335 pence. Anglo American Plc, the world's No. 2 mining company, added 0.3 percent to 1,114 pence.

Copper for September delivery rose as much as 2.25 cents, or 1.8 percent, to $1.2425 a pound on the Comex division of the New York Mercantile Exchange, the highest intra-day price since June 8. Copper in London yesterday rose 2 percent. It didn't trade in New York because of the Independence Day holiday.

Year `Started Well'

CRH Plc rose 2.3 percent to 18.05 euros. Europe's third- largest maker of building materials said the year ``started well'' and that first-half pretax profit will be 100 million euros ($123 million) greater than a year before as acquisitions boost earnings. CRH had 2003 pretax profit of 864 million euros.

Henkel KGaA, the maker of Persil detergent, lost 4.3 percent to 60.87 euros. The company reduced its full-year sales forecast after demand declined in Europe. The company expects sales, adjusted for currency effects and acquisitions, to rise 2 percent this year, rather than between 3 percent and 4 percent, said Lars Witteck a company spokesman.

Henkel is sticking to its forecast that operating profit will rise more than 10 percent this year, he said.

Business Objects SA, a French business software maker, fell 2 percent to 17.93 euros. The stock was cut to ``underweight'' from ``neutral'' by analysts at J.P. Morgan Chase & Co.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: July 6, 2004 03:45 EDT