European stocks declined as the region’s central bank paused lending to some Greek banks and speculation mounted that Spanish banks may have their credit ratings cut at Moody’s Investors Service.

The Stoxx Europe 600 Index dropped 1.1% at the close of trading, for the longest losing streak since March 22

Moody’s Investors Service is set to downgrade the credit ratings of Spanish banks later today, said two people with knowledge of the situation, who asked not to be identified because the decision hasn’t been announced.

The nation sold the maximum amount of notes targeted at a bond auction today as borrowing costs rose and 10-year bond yields approached levels that drove Greece and Portugal into bailouts.

National benchmark indexes declined in all 10 western European markets open today. The U.K.’s FTSE 100 , Germany’s DAX and France’s CAC 40 all dropped 1.2%. Greece’s ASE lost 3.4% to the lowest level since January 1990. Exchanges in Switzerland, Norway, Sweden, Denmark, Finland, Austria, Luxembourg and Iceland were closed for the Ascension holiday.

Spanish lender Bankia tumbled 14 %. The stock has dropped for 10 consecutive days, losing 42 %. El Mundo reported that customers have withdrawn 1 billion euros since May 9, when the government said it will take over the bank.

Cookson jumped 5.5 % to 679 pence, the biggest increase since April 2. The world’s biggest maker of ceramic linings for metal smelters said it has started a strategic review and may split its main divisions.

U.S. stocks fell a fifth day amid weaker-than-estimated economic data and as Moody’s Investors Service is said to downgrade Spanish banks.

All groups in the S&P 500 declined as manufacturing in the Philadelphia region unexpectedly shrank and an index of U.S. leading indicators retreated. Caterpillar Inc. and JPMorgan Chase & Co. dropped at least 2.6% to pace losses among the biggest companies. Wal-Mart Stores Inc. (WMT), the largest retailer, rallied 5.3% as profit beat estimates.

Stocks fell as data indicated the pace of economic expansion may cool, adding to concern about a worsening of Europe’s crisis. Moody’s is set to downgrade the credit ratings of Spanish banks later today.

Consumer discretionary and industrial shares had the biggest losses in the S&P 500 among industries. Caterpillar sank 3.3% , the most in the Dow, to $88.79. JPMorgan (JPM)retreated 2.6% to $34.55. Home Depot Inc. (HD) declined 2.1% to $47.74.

Resistance 3:1363 (area of May 10-11 highs)

Resistance 2:1347 (May 15 high, МА (200) for Н1)

Resistance 1:1330 (session high, resistance line from May 15)

Current price: 1319,50

Support 1:1312 (session low)

Support 2:1300 (area of 50,0 % FIBO 1197-1420, psychological level)

Support 3:1296 (Jan 30 low)

U.S. stock futures were little changed amid a report that Moody’s Investors Service will downgrade Spanish banks.

Global Stocks:

Nikkei  8,876.59 +75.42 +0.86%

Hang Seng 19,200.93 -58.90 -0.31%

Shanghai Composite 2,378.89 +32.69 +1.39%

FTSE 5,348.94 -56.31 -1.04%

CAC 3,028.69 -19.98 -0.66%

DAX 6,349 -35.26 -0.55%

Crude oil $93.55 (+0.80%)

Gold $1553.90 (+1.13%)

Asian stocks rose, with the regional gauge poised to end a six-day losing streak, as faster-than- estimated economic growth in Japan and optimism the Federal Reserve will do more to stimulate the U.S. economy outweighed concern Greece’s debt crisis is worsening.

Nikkei 225 8,876.59 +75.42 +0.86%

S&P/ASX 200 4,157.4 -8.13 -0.20%

Shanghai Composite 2,378.89 +32.69 +1.39%

Li & Fung Ltd., a supplier for Wal-Mart Stores Inc., rose 1.7 percent.

Korea Gas Corp. jumped 6.4 percent in Seoul after a report it discovered gas in Mozambique.

Toshiba Corp., the maker of Regza brand televisions, gained 5.6 percent in Tokyo after saying it will stop television production in Japan.

Toll Holdings Ltd., an Australian trucking company, slid 6.8 percent, extending yesterday’s losses after forecasting lower full-year profit.

Asian stocks fell, with a regional benchmark index headed for its biggest loss this year, as Greece’s move to call new elections increased concern the country will decide to leave the euro and derail efforts to contain the region’s debt crisis.

Hong Kong’s Hang Seng Index and Korea’s Kospi index fell more than 3 percent, entering so-called corrections after retreating more than 10 percent from recent highs.

Nissan Motor Co., which depends on Europe for about 16 percent of its sales, slid 2.2 percent in Tokyo.

BHP Billiton Ltd., the world’s largest mining company, declined 4.1 percent in Sydney after metal prices fell.

Toll Holdings Ltd., an Australian trucking company, sank 15 percent after forecasting lower full-year profit.

Change % Change Last

Nikkei 225 8,801.17 -99.57 -1.12%

S&P/ASX 200 4,165.53 -100.75 -2.36%

Shanghai Composite 2,346.19 -28.65 -1.21%