European stocks fell, dragging the Stoxx Europe 600 Index lower for a third day, as Greece prepares to ask for an increased bailout. U.S. index futures and Asian shares declined.

Greece’s ASE Index sank to a 13-year low as National Bank of Greece SA declined. Unione di Banca Italiane SCPA, Italy’s fourth-biggest bank, retreated 2.8 percent as net income missed estimates.

Analysts are cutting European earnings forecasts by the most in almost two years just as equities in the region trail U.S. shares by the widest margin since the bull market began, according to data. Should analysts’ lowest projections for 2011 prove correct, companies would earn about 24 billion euros less than expected at the start of the year, the data show.

Greece will plead for a boost in its 110 billion-euro bailout from European governments and the International Monetary Fund today in talks clouded by the arrest of IMF Managing Director Dominique Strauss-Kahn. Also on the agenda at meetings later in the day in Brussels is the approval of 78 billion euros in aid for Portugal and the nomination of Bank of Italy Governor Mario Draghi to be the next president of the European Central Bank.

Banks featured among the top decliners, with the STOXX 600 Europe bank index down 1.1 percent to its lowest level in more than five months. France's Societe Generale, Germany's Deutsche Bank and Commerzbank fell 1.9 to 3.6 percent. Analysts, however, said that European stocks had potential to scale new highs in the coming months on an improving macroeconomic picture and generally stronger company results.

Asian stocks fell, set for the biggest three-day drop since the aftermath of Japan’s record earthquake, on concern over Greece’s debt crisis and after Goldman Sachs Group Inc. downgraded Japanese and Korean shares.

This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management,

TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Freephone: 80072344. email: [email protected] Internet address: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.