European stocks fell for a second day, extending a four-week low, as investors watched the start of the U.S. earnings-reporting season and efforts to end a government shutdown in the world’s largest economy.

The Stoxx Europe 600 Index slipped 0.7 percent to 307.16 at 4:30 p.m. in London. The equity benchmark dropped 0.2 percent yesterday, to its lowest level since Sept. 9, after U.S. House Speaker John Boehner said he will attach conditions before backing a bill to increase the federal borrowing limit.

Amid a delay in the release of U.S. economic data because of the shutdown since Oct. 1, investors turn their attention to corporate earnings. Results from Alcoa Inc. after the close of markets mark the unofficial start of the U.S. quarterly reporting season. JPMorgan Chase & Co. and Wells Fargo & Co. will also report this week.

The U.S. government entered a partial shutdown Oct. 1 after Congress failed to pass a spending authorization bill for the financial year. It suspended some services and sent hundreds of thousands of workers on unpaid leave amid a disagreement between Republicans and Democrats.

The deadlock has coincided with the need to raise the government’s borrowing authority. Republicans demand changing the 2010 Affordable Care Act before doing so, while President Barack Obama has ruled out any negotiations on that aspect.

Senate Democrats plan a test vote before the end of this week on a measure that would grant Obama the authority to raise the debt limit, probably for a year unless two-thirds of both chambers of Congress disapprove. The Treasury Department has said it is likely to hit the $16.7 trillion debt ceiling Oct. 17. If that happens, the government will run out of cash to pay all of its bills at some point between Oct. 22 and Oct. 31, according to the Congressional Budget Office.

German factory orders unexpectedly fell in August, data showed. Orders, adjusted for seasonal swings and inflation, dropped 0.3 percent from July, when they fell a revised 1.9 percent, the Economy Ministry said. Economists had forecast a 1.1 percent increase in August, according to the median estimate.

National benchmark indexes retreated in 16 of the 18 western-European markets.

FTSE 100 6,365.83 -71.45 -1.11% CAC 40 4,133.53 -32.05 -0.77% DAX 8,555.89 -35.69 -0.42%

Telecom Italia fell 1.8 percent to 61.7 euro cents. A reduction of the BBB- long-term rating to BB+ is the “more likely outcome” after S&P concludes its review by the end of next month, the ratings company said yesterday, citing Telecom Italia’s uncertain strategic direction after Chief Executive Officer France Bernabe quit.

TGS Nopec Geophysical plunged 15 percent to 147.50 kroner, its largest drop since August 2011. Sales for the full year will be between $810 million and $870 million, the company said. That’s down from its previous forecast for revenue in the range between $920 million and $1 billion. The oilfield surveyor cited delays in getting permits for new surveys.

Petroleum Geo-Services ASA lost 7.5 percent to 67.95 kroner, the largest decline in almost two years.

Getinge AB (GETIB) slumped 10 percent to 197.60 kronor, its biggest drop since March 2009. The maker of sterilization systems said it will probably report a consolidated profit before tax of 560 million kronor ($87 million) to 570 million kronor for the third quarter. The average estimate of analysts is for pretax profit of 765 million kronor.

Novartis AG (NOVN) slipped 1.3 percent to 67.20 Swiss francs after JPMorgan Chase cut its recommendation on the drugmaker to neutral from overweight, a rating similar to buy. The stock has rallied 17 percent so far this year, compared with a 15 percent increase for the Swiss Market Index.

Перед открытием рынка фьючерс S&P вырос до уровня 1669.75 (+0.12%), фьючерс NASDAQ добавил 0.17% до уровня 3210.50 пункта.

U.S. stock futures rose as lawmakers sought to avoid a debt default and investors waited for the start of earnings season.

Global Stocks:

Nikkei 13,894.61 +41.29 +0.30%

Hang Seng 23,178.85 +204.90 +0.89%

Shanghai Composite 2,198.2 +23.53 +1.08%

FTSE  6,386.8 -50.48 -0.78%

CAC  4,158.44 -7.14 -0.17%

DAX 8,586.72 -4.86 -0.06%

Crude oil $103.41 +0.37%

Gold $1319.10 -0.45%

Upgrades:

Procter & Gamble (PG) upgraded from Market Perform to Outperform at Wells Fargo

Downgrades:

Other:

Asian stocks rose for the first time in three days, with the regional benchmark index advancing from a three-week low as utilities and developers gained.

Nikkei 225 13,894.61 +41.29 +0.30%

Hang Seng 23,136.74 +162.79 +0.71%

S&P/ASX 200 5,149.45 -11.67 -0.23%

Shanghai Composite 2,198.2 +23.53 +1.08%

Tokyo Electric Power Co. , operator of the crippled Fukushima Dai-Ichi nuclear power plant, rebounded 7 percent after declining 20 percent over the past five days.

Country Garden Holdings Co. jumped 9.1 percent in Hong Kong after the mainland developer said it met its annual contract-sales target.

Rakuten Inc., which operates an online mall, tumbled 14 percent in Tokyo after Yahoo Japan Corp. said it would eliminate vendor fees for its shopping and auction sites.

Nikkei 225 13,853.32 -170,99 -1,22%

Hang Seng 22,958.18 -180,36 -0,78%

S & P / ASX 200 5,161.11 -46,90 -0,90%

Shanghai Composite 2,174.66 14,64 0,68%

FTSE 100 6,437.28 -16.60 -0.26%

CAC 40 4,165.58 +1.33 +0.03%

DAX 8,591.58 -31.39 -0.36%

Dow -135.76 14,936.82 -0.90%

Nasdaq -37.38 3,770.38 -0.98%

S&P -14.31 1,676.19 -0.85%