Sept. 5 (Bloomberg) — U.S. stock-index futures fell and commodities slid while the euro weakened on evidence the global economic slowdown is worse than anticipated. European stocks were little changed, while German bunds declined.
Standard & Poor’s 500 Index futures slipped 0.3 percent at 7:30 a.m. in New York as FedEx Corp. projected its first decline in quarterly earnings in almost three years. The Stoxx Europe 600 Index added less than 0.1 percent after falling as much as 0.5 percent. The euro depreciated 0.2 percent to $1.2537, and the Australian dollar retreated against 14 of its 16 most-traded peers. Germany’s 10-year bunds dropped after the nation received bids for less than its maximum target at an auction. Oil fell 0.4 percent and copper slid 0.3 percent.
Euro-area services and manufacturing contracted more than initially estimated in August, London-based Markit Economics said today. The European Central Bank’s Governing Council will decide tomorrow on a bond-buying proposal President Mario Draghi says is necessary to ensure the euro’s survival. U.S. payrolls probably grew at a slower pace in August and unemployment exceeded 8 percent for a 43rd month, economists said before a Labor Department report on Sept. 7.
“The global backdrop remains very challenging,” said Sue Trinh, a senior currency strategist in Hong Kong at Royal Bank of Canada. “Expectations for the ECB to deliver details on the bond-intervention program specific enough to satisfy the market are likely to be disappointed.”
The decline in S&P 500 futures indicated the gauge will extend yesterday’s 0.1 percent drop. FedEx fell 3.5 percent in Germany after the operator of the world’s largest cargo airline said quarterly earnings will fall short of its forecast.
Facebook Inc. advanced 2 percent in German trading as Chief Executive Officer Mark Zuckerberg said he won’t start selling his holdings in the social-networking company for at least a year.
Three shares rose for every two that declined in the Stoxx 600, led by health-care and transportation companies. BP Plc, the owner of the Macondo well that caused the worst U.S. oil spill, lost 3.8 percent after the Department of Justice reiterated it will pursue charges of gross negligence. BP engaged in “gross negligence or wilful misconduct,” the U.S. said in a court filing from Aug. 31.
The euro weakened 0.4 percent versus the yen, with the so- called Aussie dollar dropping 0.6 percent against Japan’s currency and 0.5 percent versus the greenback.
Norway’s krone slid against all 16 major counterparts after a report showed Norwegian manufacturing unexpectedly contracted for a third straight month in August, adding to signs that the debt crisis is hurting exports in western Europe’s biggest oil producer.
The S&P GSCI gauge of 24 commodities slipped 0.4 percent. Aluminum, zinc and lead fell 0.5 percent. Wheat slipped for a fourth day. Silver futures retreated 0.8 percent after rallying 6.5 percent in two days.
The MSCI Emerging Markets Index fell 1 percent, headed for its lowest close since July 26. South Korea’s Kospi Index slid 1.7 percent as U.S. sales by Hyundai Motor Co. and Kia Motors Corp. missed some analysts’ estimates. The Hang Seng China Enterprises Index of mainland companies dropped 2 percent on a report China’s industrial output may slow. Russia’s Micex Index and India’s Sensex slipped at least 0.7 percent.
–With assistance from Kristine Aquino in Singapore, Peter Levring in Copenhagen, Claudia Carpenter, and Andrew Rummer, Michael Shanahan and Daniel Tilles, in London. Editors: Stephen Kirkland, Justin Carrigan, Stuart Wallace