By Daniela Silberstein April 27 (Bloomberg) -- European stocks dropped amid concern an aid package for Greece won’t stop its deficit crisis from spreading. Asian shares and U.S. stock-index futures also retreated. BHP Billiton Ltd. and Xstrata Plc dropped as metals prices fell. Banco Popular Espanol SA declined 4.9 percent after the Spanish lender said first-quarter profit fell. National Bank of Greece SA led the nation’s banks lower. The Stoxx Europe 600 Index fell 0.8 percent to 267.88 as of 9:18 a.m. in London. The measure has still climbed 5.5 percent in 2010 as the European Union agreed a 45 billion-euro ($60 billion) aid package to help Greece tackle its budget deficit. The gauge has rallied 70 percent from a 12-year low reached in March 2009 amid signs the global economy is recovering from the worst recession since World War II. “The near future will not be marked by strong gains because there are a lot of concerns in the market,” said Christoph Riniker, a strategist at Bank Julius Baer Group Ltd. in Zurich, which manages about $226 billion. “There is fear that the Greek problem will flash over to Portugal for example and there is concern about what kind of an impact that could have.” German Chancellor Angela Merkel said yesterday she won’t release funds for Greece until the nation has a “sustainable” plan to reduce its shortfall. China The MSCI Asia Pacific Index slipped 0.2 percent today as concern deepened that China’s steps to cool its property market will curb growth in the world’s third-largest economy. China Vanke Co., the nation’s biggest developer, said first-quarter profit plunged 53 percent from the previous three months amid government measures to prevent a property bubble. Futures on the Standard & Poor’s 500 Index expiring in June fell 0.1 percent. The measure yesterday dropped from a 19-month high as concern that proposed legislation will hurt banks overshadowed improving earnings at Caterpillar Inc. and Whirlpool Corp. BHP, the world’s biggest mining company, retreated 1.2 percent to 2,125 pence. Xstrata, the fourth-largest copper producer, slid 2.3 percent to 1,166.5 pence. Copper fell in London as concern about potential delays in financial aid for Greece drove investors away from higher-yielding assets. Aluminum, lead and zinc also dropped. Banco Popular Espanol declined 4.9 percent to 5.36 euros. Spain’s third-biggest commercial bank said first-quarter profit fell 9.2 percent to 204 million euros on lower revenue from lending. Greek Banks National Bank of Greece sank 2.9 percent to 10.79 euros. EFG Eurobank Ergasias SA fell 1.1 percent to 5.36 euros. Alpha Bank SA lost 2.8 percent to 5.85 euros. Mortgage covered bonds of Greece’s three biggest lenders were cut or placed on negative review by Moody’s Investors Service, following “the downgrade and review for further downgrade of Greece’s sovereign ratings,” Moody’s said. Portuguese lender Banco Comercial Portugues SA declined 2.3 percent to 70.9 euro cents. With a higher debt burden and a slower 10-year growth rate than Greece, Western Europe’s poorest country is being punished by investors as the sovereign debt crisis spreads. The risk premium on Portuguese bonds rose to more than double the past year’s average this month. Portugal’s credit default swaps show investors rank its debt as the world’s eighth-riskiest, worse than for Lebanon and Guatemala. Lloyds Banking Group Plc climbed 1.7 percent to 71.44 pence. The U.K.’s biggest mortgage lender said it returned to profit for the first time since 2008 on falling loan impairments and an improving economy. Umicore SA jumped 4.2 percent to 29.09 euros. The world’s largest precious-metals recycler said 2010 earnings before interest, taxes and one-time items will rise to between 260 million euros and 290 million euros. To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.

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