European Stocks Decline on Greek Debt Impasse

European (SXXP) stocks declined from a five-month high as the region’s finance ministers failed to agree on a debt-swap deal for Greece and called for a greater contribution from bondholders. U.S. index futures retreated and Asian stocks fluctuated.

Banks tumbled, leading losses on the benchmark Stoxx Europe 600 Index.

Society Generale SA and Credit Agricole SA (ACA) retreated at least 3.5 percent after Standard & Poor’s cut the banks’ credit ratings.

Siemens AG (SIE), Europe’s largest engineering company, dropped 3.3 percent after saying that achieving its goals for the year has become harder.

Petroplus Holdings AG plunged 82 percent after planning to file for insolvency.

The Stoxx 600 fell 0.8 percent to 254.9 at 9:48 a.m. in London.

The gauge has still risen 4.2 percent so far this year as reports added to optimism that the global economy is strengthening.

Futures on the Standard & Poor’s 500 Index slid 0.5 percent. The MSCI Asia Pacific Index declined 0.1 percent.

From: Bloomberg