Bloomberg News

U.S. Stock Futures Drop as Euro-Area Recession Deepens

February 14, 2013

U.S. stock futures fell, signaling the Standard & Poor’s 500 Index will retreat from the highest level since October 2007, as economies in the euro region and Japan contracted more than forecast.

S&P 500 futures expiring in March lost 0.2 percent to 1,514.3 at 10:09 a.m. in London. Dow Jones Industrial Average futures dropped 22 points, or 0.2 percent, to 13,936.

The euro-area recession deepened more than economists forecast with the worst performance in almost four years as its three biggest economies suffered slumping output.

Gross domestic product fell 0.6 percent in the fourth quarter from the previous three months, the European Union’s statistics office in Luxembourg said today. That’s the most since the first quarter of 2009 in the aftermath of the collapse of Lehman Brothers Holdings Inc. and exceeded the 0.4 percent median forecast of economists in a Bloomberg survey.

Japan’s economy unexpectedly shrank last quarter as falling exports and a business investment slump outweighed improved consumption. Gross domestic product contracted an annualized 0.4 percent, following a revised 3.8 percent fall in the previous quarter, the Cabinet Office said in Tokyo today. The median forecast of 32 economists surveyed by Bloomberg News was for 0.4 percent growth.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

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


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