European Stocks Retreat For Third Day As Insurers Drop

European stocks retreated for a third day, their biggest three-day drop in more than three months, as insurance companies declined. U.S. index futures slid, while Asian shares were little changed.

Faurecia (EO) SA retreated 2.6 percent after cutting its full- year target after first-half profit fell. Elan Corp. tumbled 14 percent after the results of a study for an Alzheimer’s drug failed to show that patients improved. Swatch Group AG (UHR) gained 2.2 percent after posting sales and profit that increased.

The Stoxx Europe 600 Index (SXXP) dropped 0.3 percent to 251.13 at 8:57 a.m. in London. The benchmark measure has slumped 4.4 percent over the last three days as concern mounted that Greece will default and more Spanish regions will follow Valencia in seeking a bailout.Standard & Poor’s 500 Index futures expiring in September fell 0.3 percent today, while the MSCI Asia Pacific Index lost 0.1 percent.

Germany, the Netherlands and Luxembourg had the outlooks for their Aaa credit ratings lowered to negative by Moody’s Investors Service after markets closed yesterday. The ratings company cited the risk that Greece will leave the 17-nation euro currency and the “increasing likelihood” of collective support for European countries such as Spain and Italy, according to a statement.

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