European, Asian stocks take a tumble

Stocks in Europe and Asia fell, sending the MSCI World Index to its first drop in seven days, as a record decline in European manufacturing signaled the global economic slump is worsening. US index futures retreated.

ArcelorMittal, the world's biggest steelmaker, decreased 7.8 percent. Barclays Plc, the UK's second-largest bank, slipped 3.1 percent as an industry report showed UK house prices sank 8.1 percent in the 12 months to November. Mitsubishi Estate Co lost 5.6 percent after the failure of Japanese homebuilder Morimoto Co.

"Investors still think the earnings outlook is going to get worse before it gets better," said Mark Bon, a London-based fund manager who helps oversee about $750 million at Canada Life Ltd.