Stocks slip for third day in Europe, Asia

Most stocks in Europe and Asia fell for a third day on concern record oil prices will curb profits at carmakers and airlines while higher inflation keeps the Federal Reserve from cutting interest rates.

About three stocks declined for every two that rose in the Dow Jones Stoxx 600 Index, added less than 0.1 percent to 323.30 at 1:46 pm in London. European shares pared losses after a report showed fewer Americans than forecast applied for unemployment benefits last week, indicating companies are reluctant to fire more workers even as the economy slows. The MSCI Asia-Pacific Index lost 0.3 percent.

The Stoxx 600 is down 19 percent from a six-and-a-half-year high in June on concern higher fuel costs and $383 billion in credit losses will curb earnings.

National benchmarks retreated in all of the 17 western European markets that were open except Norway. The United Kingdom's FTSE 100 lost 0.3 percent. Germany's DAX fell 0.6 percent, and France's CAC 40 decreased 0.4 percent.

US stock-index futures advanced. Futures on the S&P 500 expiring in June added 1.3 points, or 0.1 percent, to 1,394.2 at 8:47 am in New York. Dow Jones Industrial Average futures advanced 17, or 0.1 percent, to 12,636. NASDAQ-100 Index futures slipped 1 to 1,963.5.

Agencies

(China Daily 05/23/2008 page17)