February 12, 2009
Stocks in Europe and Asia slipped and U.S. index futures fell as companies from Electricite de France SA to Diageo Plc posted disappointing results and investors speculated U.S. measures won’t revive the global economy.
EDF, the biggest operator of nuclear reactors, and Diageo, the largest liquor maker, fell more than 5 percent. Wal-Mart Stores Inc. retreated 2.1 percent before a report that may show U.S. retail sales declined amid rising unemployment. Mitsubishi UFJ Financial Group Ltd., Japan’s biggest lender, lost 3.5 percent as U.S. Treasury Secretary Timothy Geithner said he needs time to work out details of a bank-rescue plan unveiled Feb. 10.
The MSCI World Index dropped for a third day, losing 0.9 percent at 12:09 p.m. in London. The gauge of 23 developed countries had rallied 5.8 percent in the previous five days on optimism that global stimulus packages, a financial-rescue plan from Barack Obama’s administration and interest-rate cuts would help lift the U.S., Europe and Japan out of recessions.
“There isn’t a miracle solution,” Sebastien Korchia, a fund manager at Meeschaert Asset Management in Paris, which oversees about $2.6 billion, said in a Bloomberg Television interview. “It will take time. The market is worried.”
U.S. stocks gained yesterday as lawmakers debated a $789 billion plan to revive the economy. U.S. House and Senate lawmakers agreed on a compromise late yesterday, a smaller bill than originally approved by both groups.
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