European and U.S. stock futures declined and most Asian shares fell after Japan’s gross domestic product expanded less than estimated, underscoring concern that the global economy is slowing. Corn retreated after climbing to a record last week. The Euro Stoxx 50 Index futures lost 0.3 percent, while the Standard & Poor’s 500 Index slipped 0.4 percent at 7:13 a.m. in London. The MSCI Asia Pacific Index declined 0.3 percent. Australia and New Zealand’s currencies weakened 0.3 percent. Corn dropped 0.4 percent in Chicago. Japan’s second-quarter economic data comes as Bank of America Corp. cuts its growth outlook for China. Bank of England Governor Mervyn King said Europe’s crisis has “no obvious end in sight� before a report tomorrow that may show the euro- area’s economy contracted in the three months through June 30. Federal Reserve Bank of San Francisco President John Williams said it’s time to move ahead with a third round of asset purchases, according to the San Francisco Chronicle. “There is a tug-of-war in global markets between stimulus expectations and bad economic fundamentals,� said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd., which has 33 trillion yen ($422 billion) in assets. “The GDP was much lower than expected, fueling negative sentiment. That’s also driving expectations the Bank of Japan (8301) may add monetary easing, which is bolstering markets.� The world’s third-largest economy expanded at an annualized 1.4 percent in the three months through June, compared with a revised 5.5 percent expansion in the first quarter, the Cabinet Office said today. The median forecast of 24 economists surveyed by Bloomberg was for 2.3 percent growth. To contact Bloomberg News staff for this story: Chua Baizhen in Beijing at bchua14@bloomberg.net To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

Source