European Stocks, U.S. Index Futures Fall; Asian Shares Advance

By Adria Cimino

Dec. 7 (Bloomberg) -- European stocks declined, led by mining companies as metals prices fell. U.S. futures retreated, while Asian shares rose.

Fresnillo Plc, the world’s largest primary silver producer, and Xstrata Plc led basic-resources producers lower, sinking at least 1.6 percent. Siemens AG, Europe’s biggest engineering company, slipped 1.9 percent after Morgan Stanley cut its recommendation on the shares. Nutreco Holding NV rose 3.4 percent after ING Groep NV recommended buying the stock.

The Dow Jones Stoxx 600, a benchmark for the region, slipped 0.7 percent to 247.29 at 8:17 a.m. in London. The index is valued at about 56 times its companies’ reported earnings, near the highest since June 2003, according to weekly data compiled by Bloomberg.

European stocks gained last week following government reports that showed manufacturing in China and Europe expanded and employers in the U.S. cut the fewest jobs in November since the recession began. Record-low interest rates and about $12 trillion in spending by governments worldwide have spurred a 58 percent rally in the Stoxx 600 since March 9.

U.S. stocks rose during the last trading session, lifting the Standard & Poor’s 500 Index to the biggest weekly gain in three weeks. S&P 500 futures slipped 0.4 percent today, while the MSCI Asia Pacific Index added 0.4 percent.

Asian Stocks

Canon Inc., the world’s largest maker of cameras and which gets 28 percent of revenue in the Americas, added 3.3 percent in Tokyo as the U.S. jobs report on Dec. 4 buoyed confidence in an economic recovery. Billabong International Ltd., a clothing maker that gets more than half its revenue in the Americas, added 4.9 percent in Syndey.

Fresnillo lost 1.3 percent to 853.5 pence. Xstrata, the world’s fourth-biggest copper supplier, slid 1.5 percent to 1,050 pence. Copper, lead, nickel and silver were among metals declining in London.

Siemens retreated 1.9 percent to 62.31 euros. Morgan Stanley cut its recommendation on the shares to “equal weight” from “overweight.”

BASF, Randstad

BASF SE, the world’s biggest chemical company, will post better-than-expected fourth-quarter results after sales in October and November were “pleasing” and new orders increased, Chief Executive Officer Juergen Hambrecht told the Frankfurter Allgemeine Sonntagszeitung newspaper. BASF shares rose 1.2 percent to 33.2 euros.

Randstad Holding NV gained 1.1 percent to 33.18 euros. The second-largest temporary staffing company was raised to “buy” from “hold” at Deutsche Bank AG.

Forecasts for the fastest U.S. earnings growth in 15 years are failing to convince options traders that the S&P 500 will extend its biggest rally since the 1930s.

S&P 500 options to protect against declines in stocks over the next year cost 22 percent more than one-month contracts, the highest since 1999, data compiled by London-based Barclays Plc and Bloomberg show. The gap shows concern that analyst estimates for record earnings by 2011 may prove exaggerated, endangering an advance that pushed the S&P 500 up 63 percent since March.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
Last Updated: December 7, 2009 03:22 EST

i short ctsh on thursday & was screw friday pre market
now this news? have to tread carefully...