Stocks in Europe, Asia Decline

Stocks in Europe and Asia fell as PSA Peugeot Citroen posted a loss and speculation grew that the proposed U.S. bank rescue won’t revive credit markets and the economy., Bloomberg 2/11/2009 5:33:32 AM

Peugeot, France’s biggest carmaker, sank 2.4 percent. Barclays Plc and Credit Agricole SA slid more than 3 percent after Treasury Secretary Timothy Geithner said he’s still exploring a range of different structures” to bail out banks. Groupe Danone SA slipped 4 percent after the world’s biggest yogurt maker said sales growth this year will miss its medium- term” goal as consumer spending falters.

The MSCI World Index declined for a second day, losing 0.6 percent to 841.76 at 12:23 p.m. in London. The gauge of 23 developed countries had posted a 5.8 percent rally in the previous five days on optimism that measures by U.S. President Barack Obama and interest-rate cuts would help lift economies in the U.S., Europe and Japan out of recession.

Europe’s Dow Jones Stoxx 600 Index slipped 1 percent today, as gains by Rio Tinto Group, ArcelorMittal and Sanofi-Aventis SA limited the drop. The MSCI Asia Pacific Index that excludes Japan fell 1.6 percent.