Feb. 8 (Bloomberg) -- European stocks dropped, extending their biggest weekly slump in 11 months, as European finance chiefs failed to ease concern over deficits in Greece, Portugal and Spain. U.S. index futures fluctuated and Asian shares fell.

National Bank of Greece SA and EFG Eurobank Ergasias SA, the countries’ biggest banks, sank more than 3 percent. Aker Solutions ASA tumbled 8.3 percent after missing out on an order. Dexia SA surged 3.3 percent after saying it won’t need to sell its Turkish unit or its asset-gathering business to win European Union approval for a taxpayer-funded bailout.

Europe’s Dow Jones Stoxx 600 Index dropped 0.3 percent to 236.78 at 11:35 a.m. in London, bringing the decline since this year’s high on Jan. 19 to 9.1 percent. The gauge plummeted the most since March last week on concern that efforts by Greece, Spain and Portugal to reduce their budget deficits will harm the economic recovery.

“Resolution of the challenges facing Greece, Portugal and Spain is likely to take time and as a result risk premiums will remain elevated,” UBS AG economist Larry Hatheway and strategist Kenneth Liew wrote in a report. The brokerage reduced its global equity allocation to “neutral” from “a small overweight.”

Futures on the Standard & Poor’s 500 Index were little changed today. The Dow Jones Industrial Average jumped more than 120 points in the final hour of trading on Feb. 5 as investors speculated the EU may come up with a solution for budget deficits in Greece and Spain and U.S. consumer credit dropped less than forecast.

Asian Shares

The MSCI Asia Pacific Index slid 0.5 percent, a third day of declines, as Panasonic Corp. and Casio Computer Corp. reported losses.

Borrowing costs have jumped for Portugal and Spain, raising concern that Greece’s woes will be shared as governments try to rein in record deficits run up fighting the global financial crisis. European Central Bank President Jean-Claude Trichet said the ECB is “confident” Greece will cut its deficit below the limit of 3 percent of gross domestic product in 2012 from 12.7 percent.

“The European members of the G-7 will make sure it is managed,” French Finance Minister Christine Lagarde told reporters on Feb. 6 after meeting counterparts and central bankers from the Group of Seven in Iqaluit, Canada.

G-7 finance ministers pledged to press ahead with economic stimulus measures even as investors intensify their focus on mounting budget deficits.

‘Deliver the Stimulus’

“We need to continue to deliver the stimulus to which we are mutually committed and begin looking at exit strategies to move to a more sustainable fiscal track,” Canadian Finance Minister Jim Flaherty told reporters.

European investor confidence dropped for the first time in seven months in February as the economic recovery showed signs of losing steam. An index measuring sentiment in the 16-nation euro region fell to minus 8.2, a four-month low, from minus 3.7 in January, the Limburg, Germany-based Sentix research institute said today.

National Bank of Greece, the country’s biggest lender, tumbled 4 percent to 13.54 euros while Eurobank, the second- largest, dropped 3.6 percent to 5.35 euros. Greece’s ASE Index fell 1.9 percent, extending a 10-month low.

Aker Solutions tumbled 8.1 percent to 74.50 kroner, the biggest intraday drop since August. Norway’s largest engineering company lost out on a 6.9 billion-krone ($1.2 billion) contract to Hyundai Heavy Industries Co. Ltd. to supply the platform at Eni SpA’s Norwegian Goliat oilfield development.

Dexia, Xstrata

Dexia, which received billions of euros in capital and funding guarantees from France, Belgium and Luxembourg, rallied 3.3 percent to 4.16 euros, paring four days of declines.

The company agreed on Feb. 5 with the EU’s antitrust authority to sell municipal-lending units in Italy and Spain, its Slovak consumer-banking division and its Turkish insurance business to gain approval of the taxpayer-funded bailout. Still, Dexia will be able keep its Denizbank AS consumer-banking network in Turkey.

Xstrata, the world’s largest exporter of coal used for power, gained 1.2 percent to 961.5 pence. Full-year operating earnings before interest, tax, depreciation and amortization, or Ebitda, fell 27 percent to $7.05 billion, beating the $6.67 billion median of 19 analyst estimates compiled by Bloomberg.

Randgold Resources Ltd. soared 6 percent to 4,460 pence after fourth-quarter profit tripled on surging gold prices. The developer of mines in west and central Africa reported net income of $32.08 million, from $9.12 million a year earlier.

International Power Plc rose 2.3 percent to 321 pence after the Independent reported that GDF Suez SA may revise an offer for the British utility after talks collapsed last month. A new deal may include offering cash to shareholders, the newspaper said, citing a person close to the situation.