European stocks rose, with the Stoxx Europe 600 Index extended its biggest gain in three months, amid speculation the European Central Bank will act to contain the crisis in the region of the debt. Asian stocks and U.S. futures advanced.
BHP Billiton Ltd., the world's biggest mining companies led the commodity. Bayerische Motoren Werke AG led gains among manufacturers of cars after U.S. sales last month rose 30 percent over the previous year. Britvic Plc, the maker of fruit drinks, Robinson led the fall in shares in the Stoxx 600 after reporting its first loss for the year at least 7 years.
The Stoxx 600 rose 0.6 percent to 268.65 as of 12:48 pm in London. The index rose 2 percent yesterday, the most since September 1, amid speculation the ECB policy makers may step up measures to contain the crisis and government debt after a report showed manufacturing activity China grew at its fastest pace in seven months in November.
"Amid the optimism, the euro zone debt worries persist," said Jonathan Shroud, a trader at London Capital Group. "Operators have a clue yesterday by Jean-Claude Trichet, that some kind of aggressive policy to ease the concerns of the debt was in the wings. Traders keenly watching the ECB press conference today for any clarification further, but if he does not deliver, things could turn very strong. "
Futures contracts on the Standard & Poor's 500 Index expiring this month rose 0.4 percent, while the MSCI Asia Pacific Index rose 1.4 percent.
ECB
The ECB left interest rates unchanged today, as predicted by all 52 economists surveyed by us. The focus is now on Trichet's press conference at 2:30 pm in Frankfurt and whether to take further steps to stop the spread of the crisis, as the expansion of the ECB providing unlimited liquidity to banks and significantly ramping up its purchases of bonds, both of which were supposed to be temporary measures.
Japanese companies increased spending for the first time in three years and the U.S. Labor Department tomorrow may say U.S. payrolls expanded for the second consecutive month, after reports yesterday said job growth and manufacturing expanded in the U.S. economy.
Trends in European populations in 2010 are likely to be repeated next year, and investors should support actions in countries like Germany and bet against nations in the "periphery," wrote Goldman Sachs Group Inc. strategists led by Peter Oppenheimer, in a report. Investors should also take actions to sales in the major emerging economies, which will outpace growth in the euro zone, and companies with "high operating leverage" amid "strong global economic growth," said the report.
U.S. Data
In the U.S., fewer Americans signed contracts to buy existing homes in October for the second consecutive month, adding to evidence of a housing recovery is taking time to develop, economists said before a report today 10:00 am in Washington. At 8:30 am the Labor Department may report claims for unemployment benefits rose to 424,000 weeks ago. Claims fell to 407,000 in the previous week, the lowest level since July 2008.
The Fed report on regional activity, known as the Beige Book said yesterday that the economy was strong in much of the U.S. the hiring of the improvement, expansion of manufacturing and retailers anticipated a holiday shopping season stronger. Anecdotal information will help policy makers frame the discussion of the economy at its next meeting on 14 December.
BHP Billiton, Rio Tinto
BHP Billiton advanced 1.8 percent to 2,405.5 pence in London. Rio Tinto Group, the world's third largest mining, rose 2.8 percent to 4,323.5 pence.
BMW gained 1.6 percent to € 61.87. His eponymous brand was the mark of luxury cars sold in the U.S. in November, ahead of Daimler AG's Mercedes-Benz in the year-to-date deliveries. U.S. delivery of Wolfsburg, the German-based brand of Volkswagen AG, Audi rose 38 percent to 9,365 vehicles. Volkswagen preferred shares advanced 2.4 percent to € 130.90.
Britvic fell 5.1 percent to 465.6 pence. The company reported a net loss of 48.2 million pounds ($ 75,300,000) in the 53 weeks ended Oct. 3 compared with a profit of 46.8 million pounds for the 52 weeks ended 27 September 2009.
TNT NV rose 5 percent to € 19.78 and second in Europe, the largest express delivery company, said it will spin off its express business to focus on delivery of regular mail delivery.
Rexel SA, the distributor of electrical equipment in Paris in the list, rose 5 percent to € 15.90 after saying it expects 2010 sales to be close to 11.9 million euros (15.63 billion dollars) and Grossauer acquisition will add to earnings in the first year.
Petrofac, I
Petrofac Ltd. gained 2.5 percent to 1,486 pence after the provider of oilfield services and engineering has been upgraded to "buy" from "neutral" at Goldman Sachs.
Desire Petroleum Plc rose 20 percent to 127.5 pence in the British explorer focused on the Falkland Islands Raquel said its North and discovered oil.
Georg Fischer AG rose 7.2 percent to 536 Swiss francs, UBS AG raised its estimate of stock price 25 percent to 710 francs, citing a restructuring plan with success and growing demand in Asia.
Wendel SA advanced 5.8 percent to € 65.80 in the privately held company traded said its net asset value stood at € 85.7 on 23 November, 64.2 percent from a year ago up 35.6 percent from 25 August.
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