Stocks fell in Europe and the Swiss franc strengthened as slower-than-forecast economic growth in Japan heightened concern the global recovery is sputtering. Gold rose and U.S. index futures were little changed. The Stoxx Europe 600 Index fell 0.3 percent at 10:30 a.m. in London. Futures on the Standard & Poor’s 500 Index fluctuated between gains and losses. The Swiss franc appreciated against all 16 of its major counterparts, and the yen advanced 0.5 percent to 85.80 per dollar. Gold increased for a third day. Copper, lead and oil climbed as Goldman Sachs Group Inc. maintained its “overweight” recommendation on commodities. Japan’s gross domestic product expanded 0.4 percent in the second quarter, slipping behind China to become the world’s third-largest economy. Growth was less than the 2.3 percent rate forecast in a Bloomberg survey of 19 economists. About $1.9 trillion has been wiped from the value of global equities since the Fed said Aug. 10 that the pace of recovery in the world’s biggest economy will probably be “more modest” than forecast. “We’re in a weak macro environment,” said Simon Ballard, senior credit strategist at RBC Capital Markets in London. “The Japanese GDP story merely adds to last week’s poor macro data, pushing stocks lower and a flight into safe haven assets.” Three shares declined for every two that rose. The MSCI Asia Pacific Index lost 0.1 percent, while Japan’s Nikkei 225 Stock Average slipped 0.6 percent to a six-week low. The MSCI Emerging Markets Index added less than 0.1 percent. The Shanghai Composite Index jumped 2.1 percent, the most in almost three weeks, as China’s demand for resources underscored the economy’s resilience. Cairn, Vedanta Takeover bids boosted some equities in Europe. Cairn Energy Plc rose 2.4 percent after Vedanta Resources Plc agreed to buy a stake of as much as 60 percent in the company’s Indian oil unit. Aviva Plc gained 1.5 percent after rejecting an offer from RSA Insurance Group Plc for its general insurance businesses in the U.K., Ireland and Canada. The cost of insuring Vedanta’s bonds from default soared after the copper producer said it will issue as much as $6.5 billion of debt to fund the acquisition. Credit- default swaps tied to Vedanta rose 116 basis points to 649, the highest since May 26, according to data provider CMA. The S&P 500 declined 3.8 percent last week, the biggest loss in five weeks. Manufacturing in the New York region probably picked up in August after growing at the slowest pace of the year in July. The Empire State Index that covers New York, northern New Jersey and southern Connecticut rose to 8.3 from 5.08 last month, economists said before the report from the Federal Bank of New York, set for 8:30 a.m. Dollar Weakens The franc rose 0.8 percent to 1.3306 per euro, and strengthened 1 percent against the dollar to 1.0404. The yen appreciated versus all but the franc among its 16 major peers, rising 0.2 percent to 109.72 per euro. The Dollar Index, which tracks the U.S. currency against those of six trading partners, snapped a five-day gain, slipping 0.3 percent to 82.740. Gold for immediate delivery climbed 0.2 percent to $1,218.30 an ounce. Commodities demand from emerging markets and limited growth in supply will help to support raw-material prices toward the end of the year, Goldman Sachs said. Copper for delivery in three months gained 0.8 percent and lead jumped 0.7 percent on the London Metal Exchange. Crude oil for September delivery increased 0.2 percent to $75.52 a barrel on the New York Mercantile Exchange. German bonds rose, sending the yield on the 10-year bund down three basis points to 2.37 percent. The yield on the similar-maturity U.K. gilt fell five basis points to 3.07 percent. The 10-year U.S. Treasury yield slipped one basis point to 2.66 percent.

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