Stocks Decline in Europe and Asia; U.S. Index Futures Retreat
By Adria Cimino
April 24 (Bloomberg) -- Stocks fell in Europe and Asia and U.S. index futures declined, after German business confidence sank to the lowest in two years, AstraZeneca Plc's earnings trailed analysts' estimates and forecasts from Starbucks Corp. and Amazon.com Inc. disappointed investors.
AstraZeneca, the U.K.'s second-largest drugmaker, dropped the most in three months. Starbucks, the world's biggest chain of coffee shops, and Amazon.com, the largest Internet retailer, retreated in Germany. Persimmon Plc, the U.K.'s biggest homebuilder, slumped the most since 2001 after sales declined. BHP Billiton Ltd. led European resource stocks to their biggest drop this month as gold retreated.
The MSCI World Index lost 0.7 percent to 1,493.66 at 12:05 p.m. in London, extending this year's decline to 6 percent on concern earnings will slow as writedowns by financial firms reach $290 billion and the U.S. economy teeters on the brink of a recession. China's CSI 300 Index today surged the most on record after the government cut taxes on equity trading.
``Earnings have been very mixed,'' said Chicuong Dang, an analyst at Richelieu Finance in Paris, which has about $6.4 billion. ``We're not sheltered from more writedowns. We're in a period of a slowdown.''
The Munich-based Ifo institute said German business confidence dropped for the first time in four months in April. French business confidence fell to a 16-month low, as record oil prices and a surging euro dimmed the growth outlook in both economies.
U.S. Futures
Futures on the Standard & Poor's 500 Index retreated 0.3 percent today.
Europe's Dow Jones Stoxx 600 Index declined 1 percent as 14 of the 17 western European markets that were open decreased.
The MSCI Asia Pacific Index lost 0.2 percent, trimming this week's gains to 2.6 percent.
AstraZeneca dropped 5 percent to 2,025 pence after reporting first-quarter profit fell 3.7 percent to $1.50 billion as sales of Nexium declined in the U.S. and western Europe. The London-based company was expected to earn $1.58 billion, the median estimate in a Bloomberg survey.
Nobel Biocare Holding AG tumbled 16 percent to 37.52 Swiss francs for the worst performance in the Stoxx 600. The Glattbrugg, Switzerland-based company cut its sales forecast by about half and said first-quarter profit fell because of a weaker U.S. dollar and fewer orders.
Persimmon sank 8.9 percent to 592 pence. The U.K.'s largest homebuilder by market value said sales have dropped 24 percent to 1.37 billion pounds ($2.71 billion) so far this year and new developments are being postponed because of sliding demand.
Barratt, Peugeot
Barratt Developments Plc, the U.K.'s second-largest house builder by volume, sank 12 percent to 291.25 pence. Taylor Wimpey Plc, Britain's biggest homebuilder, tumbled 8.8 percent to 132.75 pence.
PSA Peugeot Citroen, Europe's second-largest carmaker, sank 4.3 percent to 44.26 euros. The company said new cars should help it meet a full-year growth target for sales of 5 percent.
The volume target for 2008 is ``increasingly challenging,'' Merrill Lynch & Co. analysts including London-based Thomas Besson wrote in a note.
Profit for companies in the Stoxx 600 may drop 0.5 percent this year, according to data compiled by Bloomberg. That's down from 11 percent growth forecast at the end of last year.
Starbucks slumped $1.69 to $16.16. Profit in the year through September will probably trail the 87 cents a share posted last year, the company said. Analysts surveyed by Bloomberg estimated 97 cents a share for the year.
Amazon
Amazon.com tumbled $4.60 to $76.40 in Germany. The company said operating income in 2008 may be as much as $940 million, less than the $985 million it predicted earlier this year.
Analysts have reduced their projections for first-quarter profits at S&P 500 companies every week since Jan. 4. They now predict a 13.7 percent average decrease in earnings for S&P 500 companies, compared with an increase of 4.7 percent at the start of the year, according to data compiled by Bloomberg.
BHP Billiton, the world's largest mining company, slid 5.2 percent to 1,827 pence. Rio Tinto Group, the third-biggest, sank 5.2 percent to 6,131 pence.
The Stoxx Basic Resource Index fell 3.4 percent after closing yesterday at the highest since November.
Gold declined for a sixth trading session in London as the dollar strengthened against the euro, eroding demand for the precious metal as a hedge against further drops in the U.S. currency. Crude oil fell for a second day in New York.
Shell, Total
Royal Dutch Shell Plc, Europe's largest oil company, retreated 2.7 percent to 1,923 pence. Total SA, the region's biggest refiner, lost 2.2 percent to 51.47 euros.
A government report yesterday showed U.S. stockpiles increased more than expected.
Mediaset SpA, the television company controlled by Prime Minister-elect Silvio Berlusconi, fell 2.7 percent to 5.59 euros. The stock was added to Goldman Sachs Group Inc.'s ``conviction sell'' list. Analysts downgraded the shares from a ``neutral'' recommendation, citing ``risks to Italian and Spanish advertising growth.''
Novozymes A/S surged 8.5 percent to 408.5 kroner. The world's biggest maker of enzymes to make biofuel maintained a profit forecast and said sales will exceed previous expectations. Novozymes expects its full-year net income to rise between 4 percent and 7 percent.
ABB Ltd. added 5.9 percent to 30.92 francs. The world's largest builder of electricity networks said first-quarter profit climbed 87 percent, beating analyst estimates, as China and India increased investment in power stations and grids.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
Last Updated: April 24, 2008 07:12 EDT
Market Data 
Markets 
