Stock Futures Fall After Japan Economy Data; Euro Climbs

U.S. stock futures retreated after a report showed Japan’s economy shrank at the fastest pace since last year’s earthquake. The euro gained as lawmakers in Greece approved a 2013 budget.

Futures on the Standard & Poor’s 500 Index slipped 0.1 percent to 1,374.4 as of 9 a.m. in Tokyo following the benchmark gauge’s worst weekly drop since June. The euro strengthened against 11 of 16 major peers, rebounding from a two-month low versus the dollar. Crude oil was little changed, while gold for immediate delivery increased 0.2 percent to $1,734.45 an ounce.

Japan’s gross domestic product shrank at an annual pace of 3.5 percent last quarter, compared with a median decrease of 3.4 percent forecast by economists in a Bloomberg survey. Greek Prime Minister Antonis Samaras garnered support of enough lawmakers to secure approval for the 2013 budget, a plan that aims to unlock bailout funds and keep the country in the euro.

The S&P 500 lost 2.4 percent last week as President Barack Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives.

All 10 groups in the S&P 500 dropped last week week. Utilities and phone companies fell the most amid concern the dividend tax may rise. Bank of America Corp. led financial shares down 3.1 percent and coal companies including Peabody Energy Corp. (BTU) slid on bets Obama’s re-election will mean more regulation. Hospitals such as HCA Holdings Inc. (HCA) rallied while insurers fell on speculation Obama will preserve the health-care overhaul he championed.

Sales at U.S. retailers probably fell in October for the first time in four months as consumers in the Northeast stayed away from auto dealers and shopping centers before and after superstorm Sandy, economists said before a report this week.

The projected 0.2 percent drop in purchases would follow a 1.1 percent gain in September, according to the median forecast of 72 economists surveyed by Bloomberg before Nov. 14 figures from the Commerce Department. Other reports may show the cost of living climbed more slowly and factory output rose.

To contact the reporter on this story: Michael P. Regan in New York at mregan12@bloomberg.net

To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net

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