Global Stocks, U.S. Futures Drop; UBS, Swiss Re, BHP Retreat

Stocks fell in Europe and Asia, led by banks, exporters and mining companies, on concern slowing economic growth in the U.S. and China will curb profit. U.S. index futures retreated.

UBS AG and Swiss Reinsurance Co. paced declines by banks and insurers in Europe. Industrial and Commercial Bank of China Ltd. decreased after Chinese regulators told banks to cool lending, while Mitsubishi Corp. led a retreat by trading companies. BHP Billiton Ltd., the world's largest mining company, and Newmont Mining Corp. of the U.S. followed metal prices lower in European trading.

The Morgan Stanley Capital International World Index lost 0.2 percent to 1,578.75 as of 10:57 a.m. in London. Futures on the Standard & Poor's 500 Index slipped 0.4 percent to 1454.9.

``More clarification on the macroeconomic scenario is needed to be positive again on equities,'' said Emanuele Vizzini, who oversees the equivalent of about $1.4 billion at Investitori Sgr in Milan. ``Data point more and more to a slowdown. We need to be cautious going forward.''

The yen climbed against all 16 of the world's most-active currencies as a deepening U.S. property slump prompted investors to cut purchases of higher-yielding assets. The gap in yields between two- and 10-year government bonds widened to the most in six weeks on speculation the European Central Bank won't raise interest rates.

Europe, Asia

Europe's Dow Jones Stoxx 600 Index lost 0.4 percent to 361.19. Germany's DAX fell 0.3 percent, and the U.K.'s FTSE 100 decreased 0.5 percent. France's CAC 40 was little changed.

The MSCI Asia Pacific Index dropped 0.5 percent to 157.60. Japan's Nikkei 225 Stock Average slid 0.7 percent, and Hong Kong's Hang Seng Index sank 0.6 percent.

UBS, Europe's largest bank by assets, dropped 3 percent to 51.35 Swiss francs. Dresdner Kleinwort Securities Ltd. downgraded the stock to ``hold'' from ``buy,'' citing potential subprime writedowns of 11 billion Swiss francs ($9.84 billion).
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