Global Stocks Retreat on China, Greece; Yen, Gold Advance.

http://www.bloomberg.com/news/2014-12-08/asian-futures-pace-u-s-losses-on-oil-as-yen-holds-gains.html

Stocks fell around the world, as Chinese shares sank the most since 2009 amid speculation tighter lending rules may crimp growth. Greek equities led European securities lower on concern early elections could trigger renewed political turmoil. The yen and gold climbed.

Futures on the Standard & Poor’s 500 Index lost 0.8 percent as of 8:41 a.m. in New York. The Stoxx Europe 600 Index slid 1.6 percent, as Greece’s benchmark gauge tumbled 10 percent. TheShanghai Composite Index (SHCOMP) plunged 5.4 percent. West Texas Intermediate crude rose 0.9 percent. The yen strengthened the most in two months, while gold increased 1.4 percent.

China took one of its biggest steps yet to push local governments away from using opaque financing vehicles to raise money as policy makers seek to reduce leverage. U.K. manufacturing output unexpectedly fell for the first time in five months. Greece’s move to bring forward the process for choosing a new head of state risks triggering parliamentary elections that could put in power a party that opposes the terms of the nation’s bailout by the European Union.

“Equity markets are driven this morning on the back of a Chinese selloff and oil prices not being able to find a bottom,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, said in a phone interview. “There is a growing feeling that if the price of oil goes down further, there is a risk of a further slowdown in the economy.”

Greek Rout

In Greece, the ASE Index headed for its biggest drop in 27 years and yields on 10-year bonds rose 48 basis points to 7.73 percent. Prime Minister Antonis Samaras will have to rely on opposition votes to push through his pick for the mainly ceremonial post. Without their support, his government could fall, risking parliamentary elections in Europe’s most indebted state as early as January. Anti-bailout group Syriza, which currently leads in opinion polls, welcomed the announcement.

Russia, Dubai

The ruble retreated 0.7 percent, trading near a record low on speculation the central bank will raiseinterest rates this week amid falling oil prices. The yield on 10-year local-currency bonds rose for an 11th day.

The Bank of Russia intervened in the currency market for the third time since moving to a free float last month, according to a statement on its website today.

Dubai’s benchmark stock index fell below 4,000 for the first time since July, as the slump in oil prompted investors to sell shares. The gauge lost 3.5 percent today. India’s CNX Nifty Index fell 1.2 percent after the country reported its widest current-account deficit in more than a year.