Oct. 28 (Bloomberg) -- European and Asian shares declined, sending the MSCI World Index lower for a seventh straight day, as SAP AG cut its software sales forecast and Canon Inc. posted a quarterly profit drop. SAP slumped 6.2 percent after the world’s biggest maker of business-management software also reported third-quarter profit that trailed analysts’ estimates. Canon, the largest camera maker, retreated 3.4 percent in Tokyo. Europe’s Dow Jones Stoxx 600 Index slid for the fourth time in five days, losing 0.5 percent at 8:08 a.m. in London. The gauge has declined 3.4 percent from this year’s high on Oct. 19 amid speculation that a seven-month rally has outpaced prospects for earnings and economic growth. The MSCI World Index of 23 developed countries decreased 0.4 percent today for the longest stretch of declines since February. Stocks have retreated even as 65 percent of the 84 companies in the Stoxx 600 that have reported earnings since Oct. 7 have beaten analyst estimates, according to data compiled by Bloomberg. In the U.S., third-quarter results have topped projections for more than 84 percent of Standard & Poor’s 500 Index companies. S&P 500 futures expiring in December slid 0.3 percent after the benchmark index for U.S. equities slid for three straight days. Reports today may show orders for durable goods and sales of new houses rose in September, capping the strongest quarter of U.S. economic growth in two years, economists said. Canon, SAP The MSCI Asia Pacific Index dropped 1.2 percent today as Canon’s lower profit and losses at National Australia Bank Ltd. raised concern about the strength of the global recovery. SAP declined 6.2 percent to 32.28 euros. The German software maker posted an 11 percent increase in third-quarter profit to 435 million euros ($645 million) and said software sales will drop more than forecast as customers spend less. Sales fell 9.2 percent to 2.51 billion euros. Net income was seen at 454 million euros on sales of 2.63 billion euros, according to the average estimates of analysts surveyed by Bloomberg. Canon fell 3.4 percent to 3,460 yen. The company reported a 56 percent drop in third-quarter net income to 36.7 billion yen ($399 million). Canon maintained its forecast for a 64 percent decline in annual net income and a 22 percent drop in sales. ArcelorMittal slid 3.7 percent to 23.61 euros after the world’s largest steelmaker said third-quarter net income decreased 76 percent to $903 million from a year earlier. A report today may show U.S. bookings for goods meant to last several years gained 1 percent in September, the fourth increase in the past six months, according to a Bloomberg survey of economists. New-Home purchases climbed last month to the highest level in more than year, a separate report may show. To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.

Source