European Stocks, U.S. Futures Decline; Yen, Treasuries Gain

June 24 (Bloomberg) -- European stocks fell, led by Greece, and U.S. index futures dropped on concern slowing economic growth will hurt the most indebted countries. The yen strengthened and two-year Treasuries gained.

The Stoxx Europe 600 Index lost 0.6 percent as Greece’s ASE Index tumbled 3.2 percent at 8:35 a.m. in New York. Futures on the Standard & Poor’s 500 Index slipped 0.6 percent. The yen appreciated against all of the 16 most-traded currencies, and the U.S. Treasury note rose, sending the yield to the lowest since November. Greek bonds dropped, driving the premium to German bunds to the widest since May 7.

The Federal Reserve, pledging to keep its benchmark interest rate at a record low for an “extended period,” signaled that Europe’s debt crisis may harm American growth, according to a statement yesterday. A report on jobless claims today underscored the Fed’s view that the expansion is being restrained as joblessness limits consumer purchases.

More than five stocks fell for every one that gained on the Stoxx 600 index, as all 19 industry groups retreated except for telecommunications stocks. Banks and basic-resources shares led declines, with lenders BNP Paribas SA and Credit Suisse Group AG sliding 3 percent.

Mining companies Anglo American Plc and Rio Tinto Group lost more than 2 percent in London. The shares gained earlier after Australia’s Kevin Rudd was ousted as prime minister by his deputy Julia Gillard, prompting speculation about whether a proposed super-tax on the mining industry will be watered down.

Asian Stocks

Most Asian stocks fell, while the MSCI Asia Pacific Index was little changed. The MSCI Emerging Markets Index slid 0.6 percent, declining for a third day. Cnooc Ltd., China’s biggest offshore oil explorer, lost 1.9 percent in Hong Kong.

The decline in U.S. futures indicated the S&P 500 may fall for a fourth day. Caterpillar Inc., the world’s largest maker of construction equipment, slipped 1.4 percent in Swiss trading. Nike Inc., the largest maker of athletic shoes, sank 1.9 percent in Germany after revenue missed analysts’ estimates.

A report from the Commerce Department showed orders for durable goods excluding transportation equipment rose 0.9 percent in May. Total orders dropped for the first time in six months as demand for planes retreated. A separate report from the Labor Department showed jobless claims fell to 457,000 in the week ended June 19.

Yen Strengthens

The yen strengthened to 89.36 per dollar from 89.82 yesterday. The euro slipped to $1.2286 from $1.2311 and fell to 109.82 yen from 110.57.

Bonds rallied as stocks fell, with the yield on the two- year Treasury note falling three basis points to 0.65 percent, after dropping to 0.63 percent, the least since November. The 10-year German bund yield dropped to the lowest in more than a week. U.K. gilts rose for a fourth day, pushing the 10-year yield to an eight-month low, on speculation that this week’s British budget cuts will help keep the nation’s top credit rating.

The extra yield, or spread, investors demand to hold 10- year Greek debt instead of its German counterpart widened 10 basis points to 782 basis points today, or 7.82 percent.

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June 24 (Bloomberg) -- European stocks fell, led by Greece, and U.S. index futures dropped on concern slowing economic growth will hurt the most indebted countries. The yen strengthened and two-year Treasuries gained.

The Stoxx Europe 600 Index lost 0.6 percent as Greece’s ASE Index tumbled 3.2 percent at 8:35 a.m. in New York. Futures on the Standard & Poor’s 500 Index slipped 0.6 percent. The yen appreciated against all of the 16 most-traded currencies, and the U.S. Treasury note rose, sending the yield to the lowest since November. Greek bonds dropped, driving the premium to German bunds to the widest since May 7.

The Federal Reserve, pledging to keep its benchmark interest rate at a record low for an “extended period,” signaled that Europe’s debt crisis may harm American growth, according to a statement yesterday. A report on jobless claims today underscored the Fed’s view that the expansion is being restrained as joblessness limits consumer purchases.

More than five stocks fell for every one that gained on the Stoxx 600 index, as all 19 industry groups retreated except for telecommunications stocks. Banks and basic-resources shares led declines, with lenders BNP Paribas SA and Credit Suisse Group AG sliding 3 percent.

Mining companies Anglo American Plc and Rio Tinto Group lost more than 2 percent in London. The shares gained earlier after Australia’s Kevin Rudd was ousted as prime minister by his deputy Julia Gillard, prompting speculation about whether a proposed super-tax on the mining industry will be watered down.

Asian Stocks

Most Asian stocks fell, while the MSCI Asia Pacific Index was little changed. The MSCI Emerging Markets Index slid 0.6 percent, declining for a third day. Cnooc Ltd., China’s biggest offshore oil explorer, lost 1.9 percent in Hong Kong.

The decline in U.S. futures indicated the S&P 500 may fall for a fourth day. Caterpillar Inc., the world’s largest maker of construction equipment, slipped 1.4 percent in Swiss trading. Nike Inc., the largest maker of athletic shoes, sank 1.9 percent in Germany after revenue missed analysts’ estimates.

A report from the Commerce Department showed orders for durable goods excluding transportation equipment rose 0.9 percent in May. Total orders dropped for the first time in six months as demand for planes retreated. A separate report from the Labor Department showed jobless claims fell to 457,000 in the week ended June 19.

Yen Strengthens

The yen strengthened to 89.36 per dollar from 89.82 yesterday. The euro slipped to $1.2286 from $1.2311 and fell to 109.82 yen from 110.57.

Bonds rallied as stocks fell, with the yield on the two- year Treasury note falling three basis points to 0.65 percent, after dropping to 0.63 percent, the least since November. The 10-year German bund yield dropped to the lowest in more than a week. U.K. gilts rose for a fourth day, pushing the 10-year yield to an eight-month low, on speculation that this week’s British budget cuts will help keep the nation’s top credit rating.

The extra yield, or spread, investors demand to hold 10- year Greek debt instead of its German counterpart widened 10 basis points to 782 basis points today, or 7.82 percent.

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