The slowdown of Europe’s services and manufacturing growth has caused an adverse effect on Australian stock futures, resulting in its fall. It has created a worrying condition for the economic recovery of the country.

According to London-based Markit Economics, growth in Europe’s services and manufacturing industries slowed for a second month in June. The Stoxx Europe 600 Index declined 0.3% yesterday.

“The European market was weak, and investors are looking for clues for direction”, said Fumiyuki Nakanishi, a strategist at SMBC Friend Securities Co. in Tokyo.

Nikkei 225 stock futures were bid in the pre-market at 9,200 in Osaka, Japan and closed at 9,266.78 yesterday. New Zealand’s NZX 50 Index plunged 0.1% in Wellington. Futures on Australia’s S&P/ASX 200 Index dropped 0.3% today.

Europe’s debt crisis and Chinese steps to curtail property prices will harm global growth.

The MSCI Asia Pacific Index has fallen 13% from its high this year in April.

Companies in the measure trade are on an average estimated profit of 13.7 times compared with 10.9 times for the Stoxx.

After agreeing to buy KBC Group NV’s convertible bond unit and its derivatives business in Asia, Daiwa Securities Group Inc., Japan’s second-largest brokerage is expected to remain active today.