European stocks declined after a report said that region’s bailout fund may not be able to raise enough funds. U.S. index futures and Asian shares fell.
The benchmark Stoxx Europe 600 Index dropped 0.3 percent to 219.43 at 8:43 a.m. in London. The gauge declined 0.2 percent yesterday after German Chancellor Angela Merkel said she remains opposed to joint euro-area bonds. Standard & Poor’s 500 Index futures expiring in December retreated 0.4 percent. U.S. markets were closed yesterday for Thanksgiving and will reopen for half a day’s trading today until 1:00 p.m. in New York. The MSCI Asia Pacific Index (MXAP) fell 1 percent.
The European Financial Stability Facility may not be able to raise enough funds to increase its capacity to more than 1 trillion euros as planned because of a deterioration in market conditions over the past month, the Financial Times reported, citing three unnamed senior euro-area officials.
Even a lower target suggested by Klaus Regling, head of the EFSF this month, might be difficult to reach and the funds’ eventual capacity is expected to fall “well short of its billing,” FT said, citing one of the officials.
To contact the reporter on this story: Peter Levring in Copenhagen at Plevring1@bloomberg.net or
To contact the editor responsible for this story: Andrew Rummer in London at arummer@bloomberg.net;
