Bloomberg News

European Stock Futures Drop on China; Lenders Might Move

May 25, 2012

European stock-index futures retreated as China’s biggest banks may fall short of loan targets for the first time in seven years amid an economic slowdown. U.S. index futures and Asian stocks slipped.

Mining companies may move as copper headed for a fourth weekly loss. Banking shares might be active as Moody’s Investors Service downgraded Nordea Bank AB (NDA) and Svenska Handelsbanken AB. (SHBA) Bankia SA (BKIA) may move after Reuters reported that the lender will ask for more than 15 billion euros ($18.8 billion) when it presents its restructuring plan today.

Futures on the Euro Stoxx 50 Index expiring in June fell 0.4 percent to 2,140 at 7:08 a.m. in London, while FTSE 100 Index futures also lost 0.4 percent. The Stoxx Europe 600 Index is still heading toward a 1.3 percent advance this week, its first gain this month, amid speculation China and the euro area will take steps to bolster economic growth. Standard & Poor’s 500 Index futures expiring in June decreased 0.3 percent, while the MSCI Asia Pacific Index retreated 0.6 percent.

“European markets are facing a modestly weaker open as they price in China growth concerns and uncertainty over Greece,” Stan Shamu, a market strategist at IG Markets in Melbourne, wrote in an e-mail. “Reports suggesting that China’s major banks may miss their annual loan targets for the first time in seven years amid weak demand have dampened sentiment.”

To contact the reporter on this story: Corinne Gretler in Zurich at cgretler1@bloomberg.net

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


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