By Daniela Silberstein Feb. 12 (Bloomberg) -- U.S. stock-index futures retreated after China ordered banks to set aside more deposits, fueling concern growth in the fastest growing major economy may cool. Caterpillar Inc., the world’s largest maker of bulldozers, and DuPont Co. declined in Germany. 3M Co. fell 1.3 percent as BofA-Merrill Lynch Global Research recommended selling the shares. Futures on the Standard & Poor’s 500 Index expiring in March lost 0.8 percent to 1,068.5 at 10:21 a.m. in London. Dow Jones Industrial Average futures dropped 0.6 percent to 10,047 while Nasdaq-100 Index futures slipped 0.6 percent to 1,764.75. U.S. stocks rose yesterday after European leaders pledged to aid Greece and Philip Morris International Inc. announced a $12 billion share buyback. The S&P 500 has fallen 6.2 percent from a 15-month high on Jan. 19 as widening fiscal gaps in Greece, Portugal and Spain spurred concern Europe faces another recession. “Markets are nervous because of China and Greece and are quick to react to negative news,” said Manfred Hofer, head of equity analysis at LGT Capital Management in Pfaeffikon, Switzerland, which oversees about $73 billion. “There is concern that if China slows down its growth too fast that the economic recovery is in danger. We are expecting a turbulent year for equities and that confirmed it.” The reserve requirement will increase 50 basis points effective Feb. 25, the People’s Bank of China said on its Web site today. The current level is 16 percent for big banks and 1 percent for smaller ones. The central bank on Jan. 12 increased banks’ reserve requirements for the first time since June 2008. Economy Watch Sales at U.S. retailers probably climbed in January for the third time in four months, signaling the consumer spending recovery that began in late 2009 will be sustained this year. Purchases rose 0.3 percent after dropping 0.3 percent in December, according to the median forecast of 82 economists surveyed by Bloomberg News before a Commerce Department report due at 8:30 a.m. in Washington. The Reuters/University of Michigan preliminary confidence index at about 9:55 a.m. may show consumer sentiment rose for a third month in February. Business inventories probably climbed in December for a third consecutive month, a 10 a.m. report may show. Caterpillar lost 0.7 percent $55.76. DuPont, the third- largest U.S. chemical company, slipped 0.6 percent to $32.37. 3M fell 1.3 percent to $79.25. The maker of 55,000 products from Post-It Notes to respiratory masks was cut to “underperform” from “neutral” at BofA-Merrill Lynch Global Research. More than 300 companies in the S&P 500 have reported fourth-quarter earnings since Jan. 11, and about 76 percent have beaten analysts’ estimates, according to data compiled by Bloomberg. Duke Energy Corp., Agilent Technologies Inc. and HCP Inc. are among companies announcing results before market open today. To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.

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