Stocks retreat in Europe, Asia

European stocks dropped for a second day as economists forecast the United Kingdom may slip into a recession. Asian shares fell.

The MSCI World Index lost 0.9 percent to 1,312.2 at 11:08 am in London as all 10 industry groups decreased. The index has dropped 17 percent this year as credit-related losses surpassed $500 billion and inflation accelerated, threatening economic and profit growth.

Europe's Dow Jones Stoxx 600 Index declined 0.9 percent, while the MSCI Asia Pacific Index decreased 1.1 percent. Futures on the Standard & Poor's 500 Index rose 0.1 percent.