Reply #6: European, Asia Stocks Fall on Economy; U.S. Index Futures Drop

[ozymandius]

Dec. 1 (Bloomberg) -- Stocks in Europe and Asia fell, paring the MSCI World Index’s biggest weekly gain, as the lowest U.K. home prices in three years and a record contraction in Chinese manufacturing signaled the global economic slump is worsening. U.S. index futures also declined.

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“Investors still think the earnings outlook is going to get worse before it gets better,” said Mark Bon, a London-based fund manager who helps oversee about $750 million at Canada Life Ltd. “There is little short-term prospect for a turnaround” in the economy, he said.

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Standard & Poor’s 500 Index futures slipped 2 percent before a report that may show U.S. manufacturing contracted at the fastest pace in 26 years.

The National Retail Federation said 172 million U.S. shoppers went to stores and Web sites over the weekend, a 17 percent increase from a year ago and more than a forecast of 128 million. They spent an average of $372.57, up 7.2 percent from last year, according to an e-mailed survey conducted for the NRF by BIGresearch, a Worthington, Ohio-based polling firm.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a7sXZ7Snm8yw&refer=home