Global Stocks Drop; SABMiller, Applied Materials, Honda Fall

Global stocks declined after earnings from SABMiller Plc, Sodexho Alliance SA and Applied Materials Inc. deepened concern that profit growth is slowing.

Credit Agricole SA retreated after France's second-biggest bank by assets posted net income that trailed analysts' estimates. Honda Motor Co., Japan's second-largest automaker, and Sharp Corp. led Asian exporters lower on concern overseas demand for their products will wane after U.S. consumer spending weakened.

The Morgan Stanley Capital International World Index lost 0.7 percent to 1,597.01 as of 12:10 p.m. in London. Standard & Poor's 500 Index futures declined 0.5 percent to 1,471.30. Shares in China dropped the most in a week, while stocks in Europe snapped three days of gains.

``Sentiment is negative and there is currently a tendency for investors to focus on the risk of further downgrades,'' said Ed Wallace, who helps oversee $4 billion in global equities at Gartmore Investment Management in London. ``Companies that are reporting earnings below expectations are being sold off.''

Europe's Dow Jones Stoxx 600 Index lost 1.1 percent to 366.35 as all 18 industry groups fell. France's CAC 40 retreated 1.3 percent while Germany's DAX slipped 0.9 percent. The U.K.'s FTSE 100 also decreased 0.9 percent.

Analysts have cut their earnings growth forecasts for Stoxx 600 companies this year to 8.9 percent from 9.9 percent at the start of last month, data compiled by Bloomberg shows.
money-pull.com