European stocks fell on speculation a six-month rally has outpaced the prospects for earnings as the Federal Reserve nears the end of efforts to lift the economy. U.S. index futures retreated. BHP Billiton Ltd., the world’s biggest mining company, declined 1.3 percent in London. Hennes & Mauritz AB slid 2.9 percent after Europe’s second-largest clothing retailer posted earnings that trailed analyst’s estimates. Aiful Corp., Japan’s second-biggest consumer lender by assets, tumbled 21 percent after forecasting a full-year loss. Europe’s Dow Jones Stoxx 600 Index slipped 1.1 percent at 8:10 a.m. in London. The gauge has soared 53 percent since March 9 as the Group of 20 nations committed about $12 trillion to revive growth and the Fed kept overnight borrowing costs near zero to unlock credit markets. The rally has pushed valuations on the Stoxx 600 to 47.5 times the profit of its companies, the most expensive level since 2003, according to weekly data compiled by Bloomberg. Most stocks fell in Asia today. Indexes advanced in Japan as trading resumed after a three-day holiday. Standard & Poor’s 500 Index futures dropped 0.4 percent. The benchmark index for U.S. equities slid yesterday as the Fed signaled it will use fewer tools to bolster economic growth. The central bank, following a two-day policy meeting, changed the wording in the final paragraph of its statement to say it will continue to employ a “wide range of tools” to bolster the economy. In its August statement, it said it would use “all available” tools. ‘Exceptionally Low’ The Fed left its target rate for overnight loans between banks in a record-low range between zero and 0.25 percent, and said it will stay “exceptionally low” for an “extended period.” The central bank said the economy has “picked up,” activity in the housing industry has increased, household spending seems to have stabilized and businesses are cutting back on investments and staffing at a slower pace. Leaders from the G-20 nations will meet in Pittsburgh today and tomorrow to work on an accord to prevent a repeat of the worst financial crisis since the Great Depression and ensure a sustained recovery. U.S. President Barack Obama and his counterparts may be saddled with the weakest recovery since World War II if they are to pay off the $9 trillion tab they ran up rescuing the world economy. BHP, Anglo American BHP declined 1.3 percent to 1,679.5 pence, while Anglo American Plc dropped 1.2 percent to 2,044.5 pence. Aluminum, lead, nickel and tin fell on the London Metal Exchange. Hennes & Mauritz slid 2.9 percent to 396.50 kronor. The Stockholm-based retailer said third-quarter net income rose to 3.46 billion kronor ($500 million) from 3.33 billion kronor a year earlier. Analysts had estimated a profit of 3.5 billion kronor, according to a Bloomberg survey. AstraZeneca Plc slipped 1.4 percent to 2,760 pence. The U.K. drugmaker was cut to “sell” from “neutral” by Goldman Sachs Group Inc. as gains made on positive results for the Brilinta clot-fighting medicine give way to concern that generic competition may erode sales. Aiful sank 21 percent to 106 yen in Tokyo on its loss forecast and plans to cut as much as 44 percent of its workforce. A report today may show sales of existing U.S. homes climbed in August to the highest level in two years, another sign the real-estate collapse that triggered the global recession is abating, economists said. Separate data from the Labor Department is projected to show the number of Americans seeking jobless benefits rose last week.

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