European stocks climbed as Spain sold more 12 and 18-month notes than it had planned at a debt auction and a report showed that investor confidence in Germany improved. U.S. index futures rose and Asian shares fell.
Lagardere SCA rose after Deutsche Bank AG recommended the shares of France’s largest publisher. EON AG lost 1.2 percent after Germany’s biggest utility said it will book an impairment charge of about 3 billion euros ($4 billion) this year.
The Stoxx Europe 600 Index added 0.3 percent to 236.66 at 10:39 a.m. in London, having earlier risen as much as 0.6 percent and fallen as much as 0.4 percent. The gauge has still declined 14 percent this year amid concern the euro area’s debt crisis will derail the global economic recovery. Standard & Poor’s 500 Index futures expiring in March climbed 0.4 percent, while the MSCI Asia Pacific Index fell 1.1 percent as a report showed that Chinese housing sales slumped.
“Demand is obviously not declining as strongly as observers might have thought after the significant drops of orders in the third quarter,” said Ulrike Rondorf, an economist at Commerzbank AG (CBK) in Frankfurt. “This eases fears that the German economy is hit by an uncertainty shock similar to 2008. However, we do not believe that the ZEW will swing onto an upward trend soon.”
Spain sold 4.94 billion euros of 12- month and 18-month bills, the Bank of Spain said, compared with the maximum target of 4.25 billion euros the Treasury set for the sale.
A report at 8:30 a.m. in Washington today may show that U.S. retail sales climbed in November as Americans bought more new cars and began their holiday shopping. The 0.6 percent gain in sales would follow a 0.5 percent increase in October, according to the median forecast of 83 economists surveyed by Bloomberg News.
Dec. 9 Accord
Moody’s Investors Service said yesterday that it will review the ratings of European Union nations because Dec. 9’s summit accord produced few new measures to tackle the debt crisis. The region’s leaders agreed at the meeting in Brussels to channel 200 billion euros through theInternational Monetary Fund to increase the resources available for future bailouts.
Fitch Ratings, without taking any action, said after the close of European trading yesterday that the summit did little to ease pressure on Europe’s sovereign-bond ratings.
German Investor Confidence
The ZEW Center for European Economic Research said that its index of German investor and analyst expectations, which aims to predict developments six months in advance, posted a reading of minus 53.8 in December. That was better than the median estimate of economists in a Bloomberg News survey.
Federal Reserve Chairman Ben S. Bernanke and his policy- making colleagues meet today to discuss the outlook for an economy that has strengthened since their November gathering, lowering the jobless rate to 8.6 percent from 9 percent. The Federal Open Market Committee will release a statement at about 2:15 p.m. Washington time.
Lagardere (MMB) jumped 4.5 percent to 19.12 euros in Paris after Deutsche Bank upgraded the publisher to “buy” from “hold.”
EON retreated 1.2 percent to 16.79 euros after saying that the charge will result in adjusted net income of as much as 2.5 billion euros for the year, compared with a previous forecast of as much as 2.6 billion euros. The company projected adjusted earnings before interest, taxes, depreciation and amortization of 9.1 billion euros to 9.3 billion euros, compared with an earlier prediction of no more than 9.8 billion euros.
Separately, Allianz SE (ALV) has held talks to buy EON’s gas network, Sueddeutsche Zeitungreported, citing company officials.
European Lenders Downgraded
European banking shares lost 0.5 percent as a group after the industry was downgraded to “neutral” from “bullish” at Nomura Holdings Inc. BNP Paribas SA, France’s largest lender (BNP), lost 2.4 percent to 30.13 euros. Societe Generale SA, the country’s second-biggest (GLE), dropped 3.5 percent to 17.96 euros.
Whitbread Plc (WTB) slid 4.7 percent to 1,502 pence for its biggest drop since August. The owner of Premier Inn and Costa Coffee shops reported a slowdown in revenue growth as the U.K. hotel market weakened.
Commerzbank AG dropped 4.3 percent to 1.17 euros after Germany’s Finance Ministry denied a Reuters report that it’s in talks with Commerzbank to offer state assistance, saying that communication between the government and the bank doesn’t go beyond “exchange of information.”
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