U.S. stock futures fell, indicating the Standard & Poor’s 500 Index may trim its biggest monthly gain since 1974, and shares in Europe dropped as the U.K. economy contracted more than estimated. Intel Corp. slid 1.6 percent in Germany as the world’s largest computer-chip maker said it would offer as much as $1 billion in new stock. Air France-KLM Group slumped for a third day after Europe’s biggest airline said the global recession will push it to a loss for the year. Futures on the Standard & Poor’s 500 Index fell 0.9 percent at 10:21 a.m. in London, while the MSCI World Index slipped 0.5 percent. The gauge of 23 developed countries had gained 12 percent in March through yesterday, the biggest surge since 1975, as banks from Citigroup Inc. to JPMorgan Chase & Co. said they made money in the first two months of 2009 and U.S. Treasury Secretary Timothy Geithner unveiled plans to rid financial firms of toxic assets. “On one hand we have economic news that’s reassuring and the stabilization of the financial system, on the other hand, the context remains difficult for companies,” said Julien Quistrebert, who helps manage $2.2 billion at KBL Richelieu Gestion in Paris. “The discourse of some companies has been positive, but the crisis isn’t over. We will have bad earnings surprises.” Europe’s Stoxx 600 slipped 0.6 percent, erasing an earlier gain of as much as 0.2 percent after data showed the U.K. economy’s contraction in the fourth quarter was even worse than previously estimated as consumer spending and construction slumped the most since 1980. The MSCI Asia Pacific Index rose 0.1 percent, extending its climb since March 20 to 7.6 percent. Obama, Pandit President Barack Obama will seek support today from executives of the nation’s largest banks for his plan to stabilize the financial system. The meeting at noon Washington time is scheduled to include chief executive officers Vikram Pandit of Citigroup, JPMorgan’s Jamie Dimon and Lloyd Blankfein of Goldman Sachs Group Inc. Reports on U.S. consumer spending and sentiment may provide evidence about the pace of economic recovery. Spending probably rose in February for a second month, economists said. Intel fell 1.6 percent to $15.57. The company said it may offer shares “from time to time in connection with future acquisitions of other businesses, assets or securities.” “We don’t have anything specific in mind,” spokesman Tom Beermann said in a telephone interview. Air France slumped 5.5 percent to 6.74 euros. The airline said it will post a loss for the year ending March 31 and that it’s unlikely to report a profit in the following 12 months. The airline will suffer an operating loss of about 200 million euros ($271 million) this fiscal year. European Earnings Companies in the Stoxx 600 that have reported results since Jan. 12 have posted an average 95 percent drop in profit, data compiled by Bloomberg show. Analysts estimate earnings will climb 13 percent this year after slumping 40 percent in 2008, forecasts compiled by Bloomberg show. S&P 500 companies are projected to report profit decreased 36 percent on average in the first quarter and 30 percent in the next, according to analysts’ estimates compiled by Bloomberg. Forecasts show earnings will decline until at least the third quarter, bringing the total slump to nine straight quarters, the longest since Bloomberg began tracking the data in 1998. Siemens AG, Europe’s largest engineering company, added 1.5 percent to 45.06 euros. The company stuck to its profit forecast for this year and said earnings at its main divisions will rise at least 10 percent in the three months through March. BMW Gains Bayerische Motoren Werke AG climbed 5.3 percent to 23.66 euros. The world’s biggest maker of luxury cars was raised to “buy” from “hold” at Societe Generale SA, which said “fundamentals remain very solid despite a very tough environment.” Balfour Beatty Plc gained 4.6 percent to 350.5 pence. Britain’s biggest builder was raised to “equal weight” from “underweight” at Morgan Stanley. Monte dei Paschi di Siena SpA surged for a 10th straight day, rising 4.6 percent to 1.14 euros. Italy’s third-biggest bank said it will apply for 1.9 billion euros in government aid after posting a 47 percent decline in fourth-quarter profit. In the U.S., the S&P 500 index of 81 banks, insurers and investment firms has surged 56 percent since reaching a low on March 6 amid speculation Geithner’s plan to help investors buy toxic assets will revive credit markets. The S&P 500 has rallied 23 percent since its 12-year low on March 9. Citigroup Arbitrage Traders betting against Citigroup as part of an arbitrage with its preferred shares helped boost New York Stock Exchange short interest to the highest level in six months -- just as the bank gained 87 percent. Citigroup shares borrowed and sold short soared almost fivefold to 999 million between Feb. 27 and March 13, according to data compiled by the exchange. Total short interest for all companies jumped to 16.1 billion, NYSE Euronext said. That’s the most since Sept. 15, the day Lehman Brothers Holdings Inc. filed for bankruptcy. The S&P 500 is still down 7.8 percent this year after tumbling 38 percent in 2008, its worst annual return since the Great Depression. The MSCI World has dropped 8.5 percent in 2009 after last year’s 42 percent plunge, the biggest since the index was created in 1970.

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