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By Bloomberg

European stocks fell, trimming their best start to a year since 1989, as a measure of German inflation missed forecasts, and disappointing earnings from Royal Dutch Shell Plc dragged energy companies lower.

Shell slid 4.4 percent after reporting fourth-quarter profit rose less than analysts predicted. Vallourec SA lost 5.5 percent after saying it will write down the value of assets by as much as 1.2 billion euros ($1.35 billion) as lower oil prices force some customers to cut spending. Deutsche Bank AG rose 2.5 percent after posting a surprise quarterly profit.

The Stoxx Europe 600 Index fell 0.5 percent to 367.33 at 1:08 p.m. in London, after earlier losing as much as 0.8 percent. The gauge closed within 1 percent of a seven-year high on Wednesday, with Greek equities slumping on concern the new government will backtrack on austerity measures. The Stoxx 600 is up 7.2 percent this month as the European Central Bank announced unprecedented measures to stimulate the region’s economy.

Germany’s inflation rate turned negative in January for the first time in more than five years. Prices in Europe’s largest economy fell 0.5 percent from a year earlier, the Federal Statistics Office in Wiesbaden said today.

A gauge of oil and gas companies fell the most of the 19 industry groups on the European benchmark today. BP Plc, Total SA, Eni SpA and Statoil ASA were among the biggest drags as crude oil traded near its lowest price in almost six years.