On Friday European stocks declined as company earnings missed estimates, talks on forming a Greek government entered a fifth day and JPMorgan Chase & Co. posted a $2 billion trading loss. Asian shares and U.S. futures fell.

The Stoxx Europe 600 Index fell 0.6 percent to 249.65 at 10:52 a.m. in London. The gauge is heading toward a 1.3 percent weekly drop, its second week of losses. The benchmark measure has still increased 2.1 percent so far this year.

In Greece, Evangelos Venizelos, the socialist Pasok leader, will press counterparts on a proposal for a unity government that would avert a new election. Greece’s political impasse has raised the possibility another election will have to be held as early as next month, threatening the implementation of austerity pledges. The standoff has reignited European concern over Greece’s ability to hold to the terms of its two bailouts negotiated since May 2010 and sparked concerns about the country leaving the euro.

Spain will make a fourth attempt to convince investors its banking system is solid after failing to do so with three prior tries in as many years. The country took control of the nation’s third-biggest lender on May 9 and Prime Minister Mariano Rajoy, who said for the first time he may use public money to save banks, will announce further measures during the day to help cleanse lenders of real estate assets. A failure to shore up the system and assuage investors’ concerns threatens to escalate Europe’s sovereign- debt crisis.

Europe’s economy will fail to grow this year with risks to the outlook “tilted to the downside” after nations from Spain to Italy slipped into recession, the European Commission said.

Japanese stocks fell for a third day, capping a six-week loss, as China’s inflation and factory output data added to signs of an economic slowdown, dimming the earnings outlook for exporters