European Stocks, U.S. Index Futures Fall

By Adria Cimino - Nov 23, 2011 4:09 PM GMT+0700
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The DAX Index curve is displayed on an electronic board at the Frankfurt Stock Exchange in Frankfurt. Photographer: Ralph Orlowski/Bloomberg

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Nov. 23 (Bloomberg) -- Paul Robinson, global head of foreign exchange research at Barclays Capital, talks about a survey of the bank's clients on the economic outlook and asset allocation. He speaks with Francine Lacqua on Bloomberg Television's "On the Move." (Source: Bloomberg)

European stocks declined, for the benchmark Stoxx Europe 600 Index’s longest losing streak since August, after a report showing manufacturing in China may contract this month. U.S. index futures and Asian shares also slid.

The Stoxx 600 dropped 0.6 percent to 221.96 at 9:05 a.m. in London, for a fifth day of declines. Futures on the Standard & Poor’s 500 Index expiring in December fell 0.9 percent, while the MSCI Asia Pacific Index excluding Japan decreased 1.5 percent.

China’s manufacturing may contract in November by the most since March 2009 as home sales slide, adding to evidence the world’s second-biggest economy is slowing, a preliminary purchasing managers’ index showed today. The reading of 48 reported by HSBC Holdings Plc and Markit Economics for November compares with a final number of 51 for October. A number below 50 indicates contraction.

A preliminary reading of a euro-area composite index from a survey of purchasing managers in manufacturing and services industries fell to 46.1 in November from 46.5 in October, according to the median estimate of economists surveyed by Bloomberg News. That’s the least since June 2009. Markit Economics releases the report at 10 a.m. Paris time today.

In the U.S., a Commerce Department report due at 8:30 a.m. in Washington may show durable goods orders dropped 1.2 percent in October, economists said. A separate release at the same time will probably show personal spending increased 0.3 percent last month, slowing from a 0.6 percent gain in September, according to economists surveyed by Bloomberg.

Spain’s bonds declined yesterday, pushing two-year yields toward the highest level since 2000, as financing costs surged at bill auctions amid concern the new government will struggle to rein in the nation’s debt levels. Belgium’s 10-year bond yields rose to their highest in nine years.

The Stoxx 600 tumbled 5.8 percent over the past four trading days as Italian, Spanish and French bond yields soared, adding to concern that the sovereign-debt crisis is spreading to the euro area’s larger economies.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net