Nov. 19 (Bloomberg) -- Stocks fell in Europe and Asia, led by banks, exporters and mining companies, on concern slowing economic growth in the U.S. and China will curb profit. U.S. index futures retreated.

UBS AG and Swiss Reinsurance Co. paced declines by banks and insurers in Europe. Industrial and Commercial Bank of China Ltd. decreased after Chinese regulators told banks to cool lending, while Mitsubishi Corp. led a retreat by trading companies. BHP Billiton Ltd., the world's largest mining company, and Newmont Mining Corp. of the U.S. followed metal prices lower in European trading.

The Morgan Stanley Capital International World Index lost 0.2 percent to 1,578.75 as of 10:57 a.m. in London. Futures on the Standard & Poor's 500 Index slipped 0.4 percent to 1454.9.

``More clarification on the macroeconomic scenario is needed to be positive again on equities,'' said Emanuele Vizzini, who oversees the equivalent of about $1.4 billion at Investitori Sgr in Milan. ``Data point more and more to a slowdown. We need to be cautious going forward.''

The yen climbed against all 16 of the world's most-active currencies as a deepening U.S. property slump prompted investors to cut purchases of higher-yielding assets. The gap in yields between two- and 10-year government bonds widened to the most in six weeks on speculation the European Central Bank won't raise interest rates.

Europe, Asia

Europe's Dow Jones Stoxx 600 Index lost 0.4 percent to 361.19. Germany's DAX fell 0.3 percent, and the U.K.'s FTSE 100 decreased 0.5 percent. France's CAC 40 was little changed.

The MSCI Asia Pacific Index dropped 0.5 percent to 157.60. Japan's Nikkei 225 Stock Average slid 0.7 percent, and Hong Kong's Hang Seng Index sank 0.6 percent.

UBS, Europe's largest bank by assets, dropped 3 percent to 51.35 Swiss francs. Dresdner Kleinwort Securities Ltd. downgraded the stock to ``hold'' from ``buy,'' citing potential subprime writedowns of 11 billion Swiss francs ($9.84 billion).

``There is a tangible risk of substantial subprime losses stretching into 2008,'' London-based analysts led by Stefan- Michael Stalmann said in a note to investors today. ``This could effectively put a glass ceiling'' on the share price, said Stalmann, who forecasts it will reach 69 Swiss francs.

Swiss Re fell 6.5 percent to 91.2 francs. The world's biggest reinsurer said it wrote down 1.2 billion francs related to two credit-default swaps.

The loss, worth 981 million francs after tax, was from credit-default swaps designed to provide protection for a client against a fall in the value of a portfolio, Zurich-based Swiss Re said in an e-mailed statement.

Northern Rock

Northern Rock Plc tumbled 15 percent to 112.4 pence after the government said the bank won't get extended aid, possibly deterring bidders from the U.K. bank that was bailed out in September.

Interested parties ``should not assume at this stage that the current Bank of England loan facilities will be available'' beyond February, the Treasury said in a statement. All offers for the Newcastle, England-based mortgage lender are ``materially below the market price at the close of business'' on Nov. 16, Northern Rock said in a separate statement today.

Industrial & Commercial Bank fell 1.2 percent to HK$6.

The China Banking Regulatory Commission said it's giving ``guidance'' to banks to cool lending that's already topped its goal of 15 percent growth this year and threatens to overheat the world's fastest-growing major economy.

Mitsubishi dropped 4.5 percent to 2,970 yen. It got 39 percent of its revenue last fiscal year from metals and energy.

Mitsui & Co., Japan's second-largest trading company, slid 6.5 percent to 2,305 yen. Mitsui derives more than half its profits from trading commodities such as oil, natural gas and metals.

BHP, Newmont

BHP Billiton, the world's largest mining company, fell 0.9 percent to 1,587 pence. Anglo American Plc, the second-biggest, declined 1.9 percent to 3,026 pence.

Newmont, a gold and copper producer, slipped 10 cents to $49.59 in Germany.

Copper, lead, nickel and zinc fell on the London Metal Exchange.

To contact the reporter on this story: Marco Bertacche in Milan at mbertacche@bloomberg.net.

Last Updated: November 19, 2007 06:00 EST