European Stocks Drop as Insurers Slide After Japanese Earthquake

European stocks dropped for a third day, erasing their gains for the year, as insurers tumbled after an 8.9-magnitude earthquake in Japan triggered a 10 meter high tsunami. U.S. index futures and Asian shares retreated.

Swiss Reinsurance Co. plunged 6.7 percent. BHP Billiton Ltd. (BHP) fell 1.5 percent as Australia said it’s committed to a profit- based mining tax. K+S AG lost 6.8 percent after BASF SE (BAS) announced plans to sell its remaining stake in the potash maker, a holding that’s valued at about 1 billion euros ($1.4 billion).

The Stoxx Europe 600 Index declined 0.8 percent to 275.59 at 8:19 a.m. in London, bringing this year’s decline to 0.1 percent. The gauge has tumbled 5.3 percent since reaching a 2 1/2-year high on Feb. 17 as crude oil surged amid political unrest and violence in Libya.

Standard & Poor’s 500 Index futures fell 0.3 percent before a report that may show U.S. retail sales climbed in February by the most in four months. Other data may show business inventories rose and consumer sentiment declined.

The benchmark MSCI Asia Pacific Index dropped 1.5 percent after earthquake struck off the coast of northern Japan, shaking buildings violently in Tokyo. The earthquake triggered a tsunami that inundated towns north of the capital. (Bloomerg)