European stocks fall as Bunds rise; oil drops

The Stoxx Europe 600 Index lost 0.5 percent at 7:12 a.m. in New York, while Standard & Poor's 500 Index futures (SPX) rose 0.2 percent after the gauge's lowest close in almost two months. Germany's 10-year yield touched a one-month low. Turkey's benchmark stock index lost 2 percent. Gold added 0.7 percent and Brent crude declined 0.9 percent. European Union leaders are meeting in Milan today to discuss labor reform laws after the International Monetary Fund cut its global growth forecast. Tensions in Turkey are mounting as Islamic State militants threaten the town of Kobani across its border. The Federal Reserve will release minutes of its last meeting before Alcoa Inc. reports earnings amid reduced estimates for profit growth at U.S. companies. There's a "mixture of different bearish drivers," said Roger Peeters, chief executive officer at Close Brothers Seydler Research inFrankfurt. "It would be a surprise if new pressure were to be generated by the Fed." A worldwide acceleration is weaker than the IMF predicted 2 1/2 months ago, the Washington-based lender said yesterday as it cut its growth outlook to 3.8 percent for 2015, from 4 percent. Some financial markets may be overheating after a sustained period of near-zero rates, according to the report.