July 13 (Bloomberg) -- European and U.S. stock futures retreated and Asian stocks fell to an eight-week low as Treasury Secretary Timothy Geithner said the U.S. economy still faces “enormous challenges.” Rio Tinto Group and Total SA may lead commodity producers lower as copper and crude oil dropped for a second day. Amlin Plc and Brit Insurance Holdings Plc may decline after Keefe, Bruyette & Woods Ltd. cut its stance on European property and casualty insurers to “negative.” Royal Philips Electronics NV may gain after the company reported an unexpected net profit. Futures on the Dow Jones Euro Stoxx 50 Index slipped 0.4 percent to 2,263 at 7:27 a.m. in London. The U.K.’s FTSE 100 Index may open 14 points lower, according to IG Markets. Standard & Poor’s 500 Index futures slid 0.8 percent after the benchmark gauge for U.S. equities fell for a fourth week as consumer sentiment retreated and the steepest drop in crude oil since January dragged energy shares lower. The MSCI Asia Pacific Index slid 2.4 percent to an eight-week low. Europe’s Dow Jones Stoxx 600 Index, which has tumbled for a fourth straight week, is down 8.2 percent since June 11 on speculation share prices have outpaced the outlook for the economy after a three-month rally pushed valuations to the highest level since 2004. The gauge is still up 25 percent since March 9. Geithner said that while the pace of decline in the U.S. economy has “slowed dramatically,” there are still “enormous challenges.” Second Stimulus “It’s going to be a while before we’re confident we’re going to have a strong, sustainable recovery in place,” Geithner said in an interview with CNN’s “Fareed Zakaria GPS” show. Geithner said it was too soon to determine whether a second economic stimulus package is needed. Nomura Holdings Inc. downgraded continental European stocks to “underweight” while raising its recommendation on U.S. equities to “neutral,” saying the U.S. economy continues to outperform the euro area and is expected to do so over the next 18 months at least. Rio Tinto dropped 3.9 percent to A$46.49 in Sydney trading, while BHP Billiton Ltd., the world’s largest mining company, fell 1.3 percent to A$32.24 as copper slipped for a second day in London. Oil Producers Total and Royal Dutch Shell Plc may decline as crude retreated on concern the recession will sap demand for fuel. Oil and fuel inventories in the members of Organization for Economic Cooperation and Development rose in May to about 7 percent more than last year, the International Energy Agency said on July 10. Amlin, Brit Insurance and Hiscox Ltd. may fall after KBW downgraded the stocks to “underperform” from “market perform.” Philips may advance after Europe’s largest maker of consumer electronics reported a profit in the second quarter of 44 million euros ($61.2 million). Analysts had predicted a loss of 122.5 million euros, according to the average of 13 estimates compiled by Bloomberg. Lloyds Banking Group Plc may be active after the Sunday Times reported the U.K. lender may announce further losses of as much as 13 billion pounds ($21 billion). The newspaper did not say where it got the information.

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