European stocks declined, US stock futures followed

European stocks fell to a two month lowest today on news that Bank of Japan denied expansion of stimulus. US futures also plunged signaling a drop in S&P 500 for a second day.

The Stoxx Europe 600 retreated 1.6%, the lowest since April. FTSE 100 fell by 1.62% at 13:14 London time, Dax and CAC 40 indexes lost respectively 1.58% and 1.88%.

“Uncertainty weighs on markets today,” said Eric Bernhardt chief investment officer at Umblin AG for Bloomberg. “Investors are disappointed by the Bank of Japan’s unchanged policy as they had hoped they would do more to solve the problems on the Japanese bond market.”

US futures are softening due to Bank of Japan news posted today. S&P 500 index futures declined by 0.9% comparing to yesterdays 0.1% decline it predicts an unfavorable picture for the US market opening.  Dow Jones Industrial Average futures dipped by 0.7%.

“The market was hoping for expanded asset purchases and extension to funding terms, which has led to volatility and a risk-off morning so far.” Daniel Weston a portfolio manager wrote in an email cited by Bloomberg.

In corporate news, Lululemon fell 13% after the yoga athletic wear company was forced to pull certain yoga pants from its stores. In addition to that Lululemon posted its three month financial reports.

Sprints shares rose by 2.6 in pre-market trading as the Japanese mobile carrier raised its acquisition offer by 7.5% to counter a bid coming from Dish Network Corp who also stated purchasing intentions for the firm.

Coca-Cola Enterprises Inc. indicated that company could show negative data for the second quarter. The company added it plans to update its expectations for the year. The European bottler has been struggling with increasing competition in US market and low demand due to economic crisis in Europe. The company predicted a 11-12% full year earnings growth as the stock is up 17% this year. However, a reduction in those estimates could take place after a meeting on the Deutsche Bank Global Consumer Conference in Paris later today.