Bloomberg News

European Stock-Index Futures Fall; Telefonica Shares May Decline

December 15, 2011

Dec. 15 (Bloomberg) -- European stock futures fell, indicating the benchmark Stoxx Europe 600 Index will extend losses from a two-week low, as economic growth from China to Japan and South Korea slowed.

Telefonica SA may decline after cutting its dividend forecast for the first time in a decade. Credit Agricole SA may slide after predicting a loss in 2011 and announcing job cuts. Zodiac Aerospace SA may move as Europe’s biggest maker of aircraft seats said sales in the first-quarter rose 21 percent.

Futures on the Euro Stoxx 50 Index expiring in December lost 0.4 percent to 2,203 at 7:01 a.m. in London. FTSE 100 Index futures declined 0.3 percent. The March contract on the Standard & Poor’s 500 Index retreated 0.3 percent. The MSCI Asia-Pacific Index retreated 1.9 percent.

“The balance of risk has shifted to the downside again,” said Valentijn Van Nieuwenhuijzen, the head of strategy at ING Investment Management in The Hague, which has $163 billion in assets under management. “Overall our stance is quite defensive. It’s still uncertain what the end game is going to look like” for the euro area, he told Linzie Janis in a Bloomberg Television interview.

The Stoxx Europe 600 fell to its lowest level since Nov. 29 yesterday as the U.S. Federal Reserve refrained from taking new action to bolster the world’s largest economy. The gauge has retreated 16 percent this year as the euro-area debt crisis spread to the region’s larger economies.

--Editor: Srinivasan Sivabalan

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net

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


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