European stocks fell from a five-week high as commodity prices dropped amid concern over slowing global growth. U.S. index futures and Asian stocks also slid.
The Stoxx Europe 600 Index dropped 1.2 percent to 340.67 at 8:03 a.m. in London. Energy shares and basic-resources companies posted the biggest losses among all 19 industry groups as Brent prices slid for a fifth day, while copper tumbled to a 5 1/2-year low. Rio Tinto Group and BHP Billiton Ltd, the world’s largest mining companies, fell at least 4.5 percent while BP Plc and Royal Dutch Shell Plc slipped more than 1 percent.
Standard & Poor’s 500 Index futures dropped 0.5 percent, after the underlying gauge yesterday fluctuated before closing 0.3 percent lower. Yields on the benchmark 10-year Treasuries fell to the lowest since May 2013 as investors sought safer assets. The MSCI Asia Pacific Index retreated 0.4 percent.
The World Bank yesterday cut its forecast for global growth this year amid worsening prospects in Europe and China, the world’s biggest consumer of copper. The metal’s price tumbled as much as 8.7 percent, the most since July 2009, before paring some losses. Nickel declined to an 11-month low.
Among stocks moving on corporate news, Software AG dropped 1.8 percent. U.S. peer Progress Software Corp. slumped 9.1 percent in late New York trading yesterday on its forecasts for first-quarter profit and sales.
The Stoxx 600 yesterday rose to its highest level since Dec. 8 as retailers climbed and data showed U.K. inflation fell to its lowest level in 15 years. The gauge is still 3 percent below an almost seven-year high reached Dec. 5.
(Bloomberg)
