“European stocks fell, after the Stoxx Europe 600 Index rallied the most in a month, on concern that the Federal Reserve will reduce debt purchases as the economy strengthens. U.S. stock-index futures dropped, while Asian shares advanced.
PSA Peugeot Citroen declined 2.3 percent following a French newspaper report that Europe’s second-biggest automaker may sell new shares to raise cash. Evraz Plc fell to a record low after Stoxx Ltd. said it will delete the commodity producer from its benchmark Stoxx 600 next month. Hennes & Mauritz AB dropped 2.2 percent as Goldman Sachs Group Inc. recommended investors sell the shares.
The Stoxx 600 retreated 1.4 percent to 304.08 at 12:41 p.m. in London. The equity benchmark is still heading for a 2.5 percent advance in May, its 12th monthly gain and longest streak since 1997. It has rallied 8.7 percent so far this year, bolstered by central-bank monetary stimulus. Futures on the Standard & Poor’s 500 Index lost 0.6 percent today, while the MSCI Asia Pacific Index added 0.5 percent.
“My biggest worry is that central banks will lose their credibility, and that the Fed in particular, which has embarked on this huge quantitative-easing program, will lose the faith of investors,” Kevin Adams, who helps oversee about 69 billion pounds ($104 billion) at Henderson Global Investors in London, told Mark Barton and Anna Edwards on Bloomberg Television.
Treasuries and bonds around the world fell on concern the Fed will trim its debt purchases. The yield on U.S 10-year bonds increased three basis points to 2.19 percent in London, the highest since April 2012, after earlier reaching 2.23 percent, Bloomberg data show.