European stocks dropped in early trade on Friday, falling for a second day in a row, led by financials after U.S. insurer AIG posted a $7.8 billion quarterly loss, hit by bad credit-related investments, Reuters reported. European car makers were also on the downside after Toyota Motor Corp, the world's biggest automaker, forecast its first decline in annual net profit in seven years. BMW was down 4 percent, Peugeot was down 0.9 percent and Daimler down 0.8 percent. At 0713 GMT, the FTSEurofirst 300 index of top European shares was down 0.7 percent at 1,351.62 points. AXA was down 1.2 percent, Allianz down 1.4 percent and Banco Santander down 0.8 percent. Adding to the gloom for the financial sector, Citigroup could announce as much as $400 billion of "non-core" assets are up for sale when it meets with investors and analysts later in the day, a person familiar with the situation said.
