Stocks Decline in Europe, Asia


Stocks fell in Europe and Asia, led by financial shares and commodity producers, on a worsening profit outlook and drop in oil and metals prices. U.S. index futures retreated.

Julius Baer Holding AG slipped 6 percent after saying assets under management declined. Taylor Wimpey Plc tumbled 17 percent in London after the homebuilder said orders have fallen 40 percent, while Citizen Holdings Co. dropped 9.5 percent in Tokyo as the world's largest watchmaker cut its profit forecast. Starbucks Corp., the world's biggest chain of coffee shops, sank 3.5 percent in Germany after earnings missed analysts' estimates.

The MSCI World Index lost 1.7 percent to 924.59 at 12:25 p.m. in London, falling for the first time in three days. More than $28 trillion has been erased from the value of global equity markets as credit losses and writedowns topped $920 billion in the worst financial crisis since the Great Depression.

Futures on the Standard & Poor's 500 Index slid 2 percent. Europe's Dow Jones Stoxx 600 Index declined 3 percent with Erste Group Bank AG and BHP Billiton Ltd. losing at least 5 percent. The MSCI Asia Pacific Index dropped 3.6 percent as Australian business confidence fell to a record low.

U.K. stocks dropped for the first time in three days after reports showed home sales fell to the lowest in more than 30 years, consumer spending slowed and Morgan Stanley forecast the economy will shrink. The benchmark FTSE 100 Index retreated 124.47, or 2.8 percent, to 4,279.45 at 12:34 p.m. in London.

The MSCI Emerging Markets Index slumped 2.9 percent as stocks in Russia, the world's second-biggest oil producer, sent the Micex down 9.4 percent. The Dubai Financial Market General Index fell 7.3 percent to the lowest in almost four years, led by developers.

China's CSI Index slipped 1.1 percent, as export growth cooled to 19.2 percent in October from a year earlier. That compares with 21.5 percent in September.


TradingEconomics.com, Bloomberg.com
11/11/2008 5:27:40 AM