By Daniela Silberstein April 8 (Bloomberg) -- European stocks dropped as concern grew that Greece may default on its debt and U.S. consumer credit missed economists' estimates. U.S. futures and Asian shares also slipped. National Bank of Greece SA led the nation's banks lower as the country's debt risk surged to a record. BHP Billiton Ltd., the world's largest mining company, declined 1.9 percent in London after metal prices fell. Porsche SE slid 3.1 percent after analysts at Sanford C. Bernstein said the planned merger between the maker of the 911 sports car and Volkswagen AG may be threatened by tax and legal issues. The Stoxx Europe 600 Index fell 1.2 percent to 265.44 as of 1:18 p.m. in London. The measure has risen 4.6 percent this year as central banks maintained record low interest rates and the European Union agreed a contingency rescue plan to help prevent Greece from defaulting on its debt. "We've had a better than expected run in the market and at some point the market will correct itself," David Crawford, a London-based fund manager at Octopus Investments Ltd., which has about $1.2 billion under management, said in a Bloomberg Television interview. "Greece is an issue and the euro zone is probably not looking as attractive as the U.S. The economic recovery in Europe will lag behind." The MSCI Asia Pacific Index declined 0.6 percent, falling for the first time in six days, led by mining companies and automakers. U.S. Futures Futures on the Standard & Poor's 500 Index expiring in June lost 0.5 percent. The measure yesterday fell the most since February after the Federal Reserve reported U.S. consumer borrowing fell $11.5 billion in February, the most in three months, indicating Americans are reluctant to take on more debt without further improvement in the labor market. U.S. Stocks extended declines after Fed Chairman Ben S. Bernanke, speaking in Dallas, omitted a reference to holding interest rates lower for an extended period. The Bank of England today kept the benchmark interest rate at a record low of 0.5 percent and held its bond-purchase plan at 200 billion pounds ($303 billion). The European Central Bank left its interest-rate at a record low of 1 percent as the Greek financial crisis complicates its withdrawal of emergency stimulus measures. ECB President Jean-Claude Trichet will address reporters on today's decision at 2:30 p.m. Frankfurt time. Greece Greece's ASE Index slumped 3.8 percent, heading for its biggest three-day drop in two months, as credit-default swaps on Greek sovereign debt rose 16.5 basis points to a record 430, according to CMA DataVision prices. The yield premium of the nation's 10-year bonds to benchmark German bunds widened to the highest since the euro was introduced in 1999 after Finance Minister George Papaconstantinou was reported as saying there will be no need for additional measures to shore up the nation's finances. National Bank of Greece dropped 6.3 percent to 12.90 euros. Natixis Securities downgraded Greece's biggest bank to "reduce" from "buy." Alpha Bank SA slid 6.2 percent to 6.19 euros. The third-biggest Greek lender was cut to "reduce" from "add" at Natixis. BHP sank 1.9 percent to 2,233 pence, while Rio Tinto Group, the world's third-largest mining company, declined 2.1 percent to 3,907.5 pence. Copper fell in London for a second day, extending a decline from a 20-month high, on concern that recent gains were not supported by demand from China, the world's biggest consumer. Porsche, Volkswagen Porsche declined 3.1 percent to 44.61 euros. Volkswagen, Europe's biggest carmaker, retreated 2 percent to 69.24 euros. "Porsche has significant and potentially deal-threatening tax and legal liabilities," analysts at Bernstein including Max Warburton wrote in a report. "We are becoming less and less convinced that the deal will happen in the advertised form." Banco Popular Espanol SA dropped 3 percent to 5.66 euros. The Spanish lender was rated "sell" in new coverage at UniCredit SpA. Banco de Sabadell SA slipped 1.8 percent to 4.08 euros. The Spanish bank was also initiated with a "sell" recommendation. Etablissements Maurel & Prom SA sank 3.1 percent to 12.23 euros. The French oil explorer focusing on Africa swung to a loss of 51 million euros ($68 million) for 2009 from a year- earlier profit of 63 million euros. Hennes & Mauritz AB climbed 5.4 percent to 496.3 kronor. Europe's second-largest clothing retailer said first-quarter net income rose more than 40 percent to 3.74 billion kronor ($515 million), beating estimates, as a weaker dollar brought down purchasing costs and March sales rose. TNT NV surged 6.8 percent to 23.01 euros after Europe's second-biggest express-delivery company said it will explore an initial public offering or seek partners for its mail unit.

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