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By Bloomberg

Europe’s benchmark stock index slipped as better-than-estimated earnings at Deutsche Bank AG were offset by declines among energy stocks as oil’s descent to six-year lows hits earnings and investment. Dow Jones Industrial Average futures gained after the biggest two-day drop in almost a year.

The Stoxx Europe 600 Index retreated 0.5 percent by 8:35 a.m. in London, led by Royal Dutch Shell Plc and Vallourec SA, which will write down assets as energy firms curb investment. Deutsche Bank climbed 1.9 percent. Dow Jones futures rose 0.3 percent after a 2.8 percent plunge since Monday. Crude held losses in New York and London. Chinese stocks fell as regulators increased scrutiny of margin loans. The dollar rallied against most peers and Russia’s ruble dropped.

European investors are watching Greece’s new government as companies across the region report earnings. While central banks from Canada to Europe and New Zealand are easing or preparing to ease monetary policy, the Federal Reserve, citing a “solid” economic expansion, is pondering when to raise benchmark borrowing costs. Chinese regulators are probing the margin lending that’s helped drive the benchmark Shanghai Composite Index up 47 percent since the end of August.

Most industry groups fell on the Stoxx 600, which closed at a seven-year high on Jan. 26. Vallourec tumbled 7.1 percent as the producer of steel pipes for the oil and gas industry announced plans to write down assets by as much as 1.2 billion euros ($1.4 billion) to reflect lower spending by energy producers amid plunging crude prices.

Shell tumbled 3.5 percent in London after saying it will cut $15 billion of spending over the next three years as the crash in oil prices saw fourth-quarter profit miss expectations.

Nokia Misses

Deutsche Bank rose after the investment bank swung to a profit, posting fourth-quarter income that exceeded analyst estimates as trading revenue rose and legal charges fell.

Nokia Oyj plunged 3.6 percent after returning to profit in the fourth quarter as wireless carriers spent more on expanding and improving networks. Adjusted earnings per share were 9 cents, compared with the average analyst estimate of 9.5 cents.

West Texas Intermediate crude slipped 0.3 percent to $44.32 after sinking 3.9 percent on Wednesday. Data showing U.S. oil supplies rose the highest level in more than 30 years fueled the declines. Brent was little changed at $48.55 a barrel in London after a 2.3 percent drop yesterday.

The Shanghai Composite slipped 1.3 percent and the CSI 300 Index, which tracks shares in Shanghai and the southern city of Shenzhen, dropped 1.2 percent. Hong Kong’s Hang Seng China Enterprises Index retreated 1.9 percent while the Hang Seng Index, which closed at a four-month high this week, retreated 1.1 percent.

Fed Commentary

Regulators will assess a remaining 46 firms, after an initial 45 were checked, Xinhua News Agency reported. The China Securities Regulatory Commission said the checks were routine and shouldn’t be over-interpreted, Xinhua reported. Margin debt increased to a record 773.8 billion yuan on the Shanghai exchange Tuesday after a tenfold increase during the past two years.

The Swiss franc weakened 0.5 percent to buy $1.0994 and 97.47 euro cents. The euro was at $1.1283, while the Dollar Spot Index climbed 0.2 percent to 1,162.88, heading for its highest close since at least 2005. The dollar was stronger against 13 of 16 major peers.

The Fed acknowledged global risks in its statement, saying that it will take into account readings on “international developments” as it decides how long to keep key rates near zero. Surprisingly strong job gains argue for tightening sooner, while inflation held down by the plunge in oil prices and a cooling global economy provides grounds for delay.

Aussie Bonds

Ten-year Treasury yields were little changed after dropping 10 basis points, or 0.10 percentage point, to 1.72 percent on Wednesday. Thirty-year yields reached a record low.

Rates on Australian government debt due in a decade fell as much as 13 basis points to an all-time low of 2.47 percent. Similar maturity New Zealand yields slipped 13 basis points to 3.19 percent as the so-called kiwi bought 73.01 U.S. cents. New Zealand’s central bank shifted to a neutral stance on interest rates and hinted it’s prepared to lower them.

Grains, Copper

Wheat extended its biggest daily decline in more than a month, falling 0.5 percent to $5.025 a bushel to trade near the lowest level since October. Corn dropped 0.6 percent to $3.71 a bushel, the lowest level in more than two months. Soybeans are trading near their lowest since October.

Global grain inventories excluding rice will rise about 7 percent to 432 million metric tons by the end of the 2014-2015 season, the highest since the mid-1980s, the International Grains Council said on Jan. 22.

Copper for delivery in three months slid 1.3 percent to $5,414 a metric ton on the London Metal Exchange. The metal is heading for its biggest monthly loss since September 2011. Nickel retreated 0.6 percent.