European Stocks Slide as Roche Declines, Alcatel-Lucent Climbs

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October 13, 2011, 5:07 AM EDT By Peter Levring

Oct. 13 (Bloomberg) -- European stocks fell from a two- month high as China’s export growth slowed and Carrefour SA cut its full-year profit forecast for the second time in three months. U.S. futures slid, while Asian shares advanced.

Carrefour retreated 5.4 percent after saying its profit may fall as much as 20 percent this year. Roche Holding AG slid 3.7 percent after posting third-quarter revenue that missed analysts’ estimates. Alcatel-Lucent surged 9.1 percent after the Financial Times reported that France’s biggest telecommunications equipment maker will sell its corporate call- center business.

The benchmark Stoxx Europe 600 Index dropped 1 percent to 236.88 at 9:42 a.m. in London. The gauge rose 1.7 percent yesterday for its biggest six-day rally since January 2009, surging 10 percent. The Stoxx 600 has tumbled 19 percent from its high on Feb. 17 amid concern that the sovereign debt crisis in Europe will spread from Greece to the larger economies of Italy and Spain.

The MSCI Asia Pacific Index rose 1.2 percent for its biggest six-day rally since May 2009. Standard & Poor’s 500 Index futures decreased 0.4 percent.

China’s export growth slowed to its weakest pace in seven months. Officials said that trade faces “severe challenges” as the yuan strengthens and confidence slides in developed nations.

Exports climbed a less-than-forecast 17.1 percent in September from a year earlier, customs bureau data showed in Beijing today. The trade surplus of the world’s second-largest economy fell to $14.51 billion last month from $17.76 billion in August. Imports rose 20.9 percent, also less than forecast.

U.S. Trade Balance

In the U.S., a Commerce Department report due at 8:30 a.m. in Washington may show that the country’s trade deficit increased in August as the global economy cooled, prompting American companies to ship fewer goods abroad. The gap widened 2.2 percent to $45.8 billion, according to the median of 81 forecasts in a Bloomberg News survey. A separate report may show that initial jobless claims increased last week.

Federal Reserve officials moved closer to setting targets for economic performance such as inflation to decide how long to keep interest rates at a record low, according to the minutes of their last meeting.

Most of the central bank’s 17 governors and regional bank presidents “saw advantages” in the approach and judged it would make policy more effective, the Fed said yesterday in the minutes of the Sept. 20-21 meeting in Washington. Some officials wanted to keep more bond purchases as an option, according to the minutes, which were released after European markets closed yesterday.

--Editor: Will Hadfield

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;

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