FOREX TRADE

July 8 (Bloomberg) -- Stocks in Europe and Asia declined, sending the MSCI World Index lower for a fifth straight day, on concern that second-quarter earnings reports will show the first global recession since World War II is far from over.

Holcim Ltd. slipped 2 percent after the world’s second- biggest cement maker said it expects a “difficult” 2009. Amada Co. fell to a three-month low in Tokyo after an unexpected drop in Japanese machinery orders.

The MSCI World Index decreased 0.5 percent to 925.04 at 8:05 a.m. in London, the lowest level since May 15. Alcoa Inc. will kick off the earnings season today as the first company in the Dow Jones Industrial Average to report results. Analysts estimate profits fell an average 34 percent at Standard & Poor’s 500 Index companies in the second quarter, according to data compiled by Bloomberg.

“I am a bit concerned about the earnings season,” said Andreas Utermann, chief investment officer at Allianz Global Investor’s RCM unit. “I think the market is going to be disappointed somewhat. I am not certain we are not going to see further softness.”

S&P 500 futures added 0.2 percent after the gauge slid to the lowest level since May 1 yesterday. Europe’s Dow Jones Stoxx 600 Index sank 0.3 percent today, while the MSCI Asia Pacific Index declined 1.3 percent, falling for a sixth day.

France’s Correction

The Stoxx 600 has decreased 7.1 percent since June 11 on speculation share prices have outpaced the outlook for the economy after a three-month rally pushed valuations to the highest level since 2004. France’s CAC 40 Index today extended its drop from its June 1 high to 10 percent, the common definition of a “correction.”

Holcim slumped 2 percent to 57.3 Swiss francs. The company said it expects a “difficult” 2009 as the underlying economic developments haven’t shown an improvement through May.

The cement maker is also offering shareholders 50.3 million new shares at 42 Swiss francs apiece in a rights offer aimed at raising 2.1 billion francs ($1.9 billion) to finance the takeover of Cemex Australia.

Alcoa added 3 cents to $9.44 in Germany. The largest U.S. aluminum producer may report its third consecutive quarterly loss as lower demand from automakers and the construction industry keeps the metal at about half of last year’s prices.

Amada, a maker of metalworking machinery, retreated 4.1 percent to 556 yen in Tokyo as Japanese machinery orders unexpectedly fell 3 percent in May.

Honda Motor Co., which makes almost half its sales in North America, lost 4 percent to 2,390 yen after the Japanese currency strengthened against the dollar to a six-week high.

A stronger yen reduces income when overseas revenue is converted into local currency.

Infineon Technologies AG rose 7.3 percent to 2.64 euros. Europe’s second-largest chipmaker agreed to sell its Wireline Communications business to an affiliate of Golden Gate Capital Corp. for 250 million euros ($347 million).