European, Asian Shares Advance; US Stock-Index Futures Climb
Nov. 4 (Bloomberg) -- European stocks rose as earnings atcompanies from Societe Generale SA to Marks & Spencer Group Plcbeat analysts’ estimates and Nissan Motor Co.’s forecast boostedautomakers. Asian shares and U.S. index futures advanced.
Societe Generale, France’s second-biggest bank by marketvalue, surged 4.8 percent after third-quarter earnings doubled.Marks & Spencer, the U.K.’s largest clothing retailer, climbed5.8 percent as British consumer confidence also held at a 1 1/2-year high. Renault SA paced a surge in European carmakers asNissan narrowed its full-year loss forecast after the close oftrading in Tokyo.
Europe’s Dow Jones Stoxx 600 Index rose 1.3 percent to238.04 as of 11:27 a.m. in London, rebounding from a one-monthlow. The regional gauge has slipped 4.5 percent from this year’shigh on Oct. 19 amid speculation an eight-month rebound hasoutpaced the prospects for earnings and economic growth. Themeasure is still up 51 percent since March.
“The earnings data proves that the situation is gettingbetter,” said Rolf Biland, Zurich-based chief investmentofficer at VZ Vermoegenszentrum, which oversees $4.9 billion.“The big test will be whether we’ll see more progress duringthe next earnings season. Right now it can really go eitherway.”
The Federal Reserve may today indicate its $1 trillioninjection into the economy is helping to revive growth withoutrequiring an increase in interest rates from near zero,economists said. The Federal Open Market Committee is due torelease its monetary policy statement after the close ofEuropean markets.
‘Don’t Expect’ Guidance
“We don’t expect a lot of guidance from the Fed,” Bilandsaid. “The data isn’t clear enough to be more optimistic intheir wording.”
The MSCI Asia Pacific Index rose 0.8 percent as KoreaExchange Bank and Westpac Banking Corp. posted better-than-estimated earnings. Futures on the Standard & Poor’s 500 Indexexpiring next month gained 0.7 percent.
Societe Generale climbed 4.8 percent to 45.73 euros. Netincome rose to 426 million euros ($627 million) from 183 millioneuros a year before as its investment-banking unit returned toprofit. That compared with the 399 million-euro median estimateof 11 analysts surveyed by Bloomberg.
Marks & Spencer rallied 5.8 percent to 360.7 pence. Theretailer reported net income of 224.3 million pounds ($371million), exceeding the 201 million-pound median estimate of 12analysts surveyed by Bloomberg, and said it made a “goodstart” to the third quarter.
Next Gains
Next Plc, the U.K.’s second-biggest clothing retailer,soared 6.1 percent to 1,920 pence after raising its forecast forthe year-end holiday trading period, as third-quarter sales beatestimates driven by new ranges of women’s clothing.
U.K. consumer confidence held at the highest level in 1 1/2years last month as house prices recovered, Nationwide BuildingSociety said today. An index of sentiment was at 72 in October,the same as in September, Britain’s biggest customer-ownedlender said.
Renault rallied 3.2 percent to 31.09 euros, leading gainsamong automakers after Nissan narrowed its full-year lossforecast as government subsidies boosted vehicle demand.France’s second-largest carmaker owns 44 percent of Yokohama-based Nissan, Japan’s third-biggest auto manufacturer, and thetwo companies cooperate on some parts, production and marketing.
A measure of automakers on the Stoxx 600 advanced 2.6percent, posting the steepest gain among all 19 industry groupson the gauge.
European Earnings
Earnings have beaten analysts’ estimates at 60 percent ofthe 171 companies in the Stoxx 600 to have announced resultssince Oct. 7, according to Bloomberg data. That compares with 84percent of the 365 companies in the S&P 500 that have toppedforecasts during the same period.
Rio Tinto Group, the world’s third-largest mining company,gained 1.6 percent to 2,831 pence. Copper, lead, nickel, tin andzinc advanced on the London Metal Exchange.
Adidas AG added 3 percent to 33.63 euros after reportingthird-quarter net income of 213 million euros, topping analysts’estimates for 210.8 million euros.
Clariant AG rose 2.2 percent to 10.06 Swiss francs after itpredicted earnings will increase in the fourth quarter from ayear earlier as the benefit of job cuts and plant closuresraises profitability. The company is extending a cost-cuttingprogram and expects to spend 200 million francs ($195 million)to 300 million francs this year on restructuring.
France Telecom Rises
France Telecom SA climbed 1.6 percent to 17.17 euros afterGoldman Sachs Group Inc. lifted its recommendation on shares ofEurope’s third-largest phone company to “buy” from“neutral,” citing the stock’s “attractive valuation.”
Korea Exchange Bank jumped 7.8 percent to 13,800 won afterits third-quarter net income of 422.1 billion won ($357 million)beat the 223.7 billion won forecast by analysts.
In Sydney, Westpac added 1.4 percent to A$25.79 as itssecond-half profit fell 10 percent, less than analysts expected.The lender joined Australia & New Zealand Banking Group Ltd. insaying bad debts have peaked as the economy recovers.
Carlsberg A/S sank 4.8 percent to 343.25 kroner as theworld’s fourth-biggest brewer cut its full-year revenue forecastand reported third-quarter net income that missed analysts’estimates.
To contact the reporter on this story:Adam Haigh in London at ahaigh1@bloomberg.net
Last Updated: November 4, 2009 06:28 ESTSource: Bloomberg
