European stocks decline on expectations ECB program will be disappointing

European stocks dropped, extending their lowest level in more than 5 weeks, due to rising concerns that the European Central Bank’s asset-buying program will be disappointing. “All eyes are on the ECB and investors appear to be preparing themselves for some disappointments,” said Ralf Zimmermann, an equity strategist at Bankhaus Lampe KG in Dusseldorf, Germany. “Investors will watch the details of the ABS program and which assets Draghi is going to buy. If there is only a slow pickup in volumes, this could lead to further pressure on stocks. This is the key issue for markets, how big will be the volumes that the ECB is going to buy.”  U.S. index futures were little changed, while Asian shares dropped.

All industry sectors declined.

The Stoxx 600 retreated 0.7 percent to 337.84 at 9:26 a.m. in London. The benchmark gauge closed at its lowest level since Aug. 22 yesterday, as Italy cut its economic-growth forecasts and U.S. manufacturing data missed estimates. The index has fallen 3.2 percent since its almost six-year high on Sept. 4.

Standard & Poor’s 500 Index futures dropped 0.2 percent today.

The MSCI Asia Pacific Index lost 0.9 percent, extending its lowest level since May.

ECB President Mario Draghi pledged to start a program this month to buy asset-backed securities and covered bonds. Still, initial buying in those markets will probably be modest, according to two euro-area central bank officials who asked not to be identified because the matter is private.

The ECB, seeking to fight the threat of deflation and revive the economy, will probably leave its three main interest rates unchanged after unexpectedly lowering them last month, the median economist forecast in a Bloomberg News survey shows.

Policy makers gathering in Italy will give their decision at 1:45 p.m. local time. Draghi will speak 45 minutes later.

In the U.S., jobless claims probably rose to 297,000 in the week ended Sept. 27 from 293,000 in the previous period, according to the median estimate of economists surveyed by Bloomberg News before the report at 8:30 a.m. in Washington. Separate data may show factory orders dropped in August.

Oil and gas companies dropped 1.1 percent as a group as West Texas Intermediate crude dropped below $90 for the first time in 17 months. Seadrill Ltd. slid 5 percent to 162 kroner.

Rocket Internet lost 3.6 percent to 40.99 euros. The company, known for replicating businesses from Groupon Inc. to Airbnb Inc., completed the biggest initial public offering in Germany since 2007. It priced the sale at the top end of its range.

Shares of online apparel retailer Zalando SE dropped 7.2 percent to 20.04 euros on their second day of trading.

Societe Television Francaise 1 (TFI) rose 2.5 percent to 10.98 euros after UBS AG recommended buying the shares.

According to data compiled by Bloomberg, the volume of Stoxx 600 shares changing hands today was 9 percent greater than the 30-day average.