European stock futures fell, indicating the Dow Jones Stoxx 600 Index may drop from its most expensive level relative to earnings in five years. Most Asian shares slid on concern North Korea will step up missile tests. Rio Tinto Group, the world’s second-largest iron ore exporter, may be active after it agreed to a 33 percent cut in prices with Japan’s Nippon Steel Corp. Danone SA may decline after Europe’s biggest maker of baby food said it is seeking to raise 3 billion euros ($4.2 billion) in a rights offer. Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, lost 0.6 percent to 2,426 at 7:19 a.m. in London. The FTSE 100 Index is set to open 31 points lower, according to inter-dealer broker BGC Partners, after U.K. markets were closed for a holiday yesterday. The MSCI Asia Pacific Index was little changed, as about 10 stocks fell for every nine that rose. Europe’s Stoxx 600 was valued at 24 times the earnings of its companies yesterday, the highest since March 2004. The index climbed 0.2 percent as a rally in health-care and food stocks overshadowed North Korea’s first nuclear test in three years. Futures on the Standard & Poor’s 500 Index were little changed before U.S. markets resume trading after the Memorial Day holiday. Economists project the S&P/Case-Shiller home-price index will show property values in 20 of the largest metropolitan areas dropped 18.4 percent in March from a year earlier, compared with an 18.6 percent decline in February. Shadow of Lehman The S&P 500 must rise 41 percent to reach its last closing price before the collapse of Lehman Brothers Holdings Inc. in September, even after a 31 percent rally since March 9. Rio Tinto will probably move in London after rising 2.2 percent to A$65.48 in Sydney. After taking into account an expected loss on aluminum, iron ore may generate about 85 percent of Rio’s earnings in 2009, JPMorgan Chase & Co. said in a report this month. Danone may decline as it raises capital to cut debt and increase financial flexibility. The planned rights offer will be its first in 22 years, according to Chief Financial Officer Pierre-Andre Terisse. LG Electronics Inc., the world’s third-largest liquid crystal display television maker, lost 1.8 percent in Seoul after Yonhap News reported North Korea may fire more short-range missiles. President Barack Obama told reporters in Washington that the U.S. “will work with our friends and allies to stand up” to North Korea. The United Nations Security Council agreed to pursue new measures against the communist regime. North Korea’s first nuclear weapons test on Oct. 9, 2006, sent MSCI’s Asia index down 0.5 percent. The gauge rebounded 0.1 percent the next day and finished the month up 2.9 percent. It rose 3.1 percent in both November and December of that year.

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