Spain’s Prime Minister Mariano Rajoy
(Bloomberg)
European stock-index futures rose, tracking late gains yesterday in the U.S., while investors await earnings today from companies including DuPont Co. and Facebook Inc. Asian stocks and U.S. futures fell.
Michelin & Cie, the world’s second-largest tiremaker, may be active after revenue beat analyst estimates. Schindler Holding AG (SCHP) may move after confirming its outlook.
Futures on the Euro Stoxx 50 Index, a benchmark for the euro region, rose 0.2 percent to 2,532 at 7:02 a.m. in London. The U.K.’s FTSE 100 Index (UKX) added 0.2 percent. Futures on the Standard & Poor’s 500 Index lost 0.2 percent, while the MSCI Asia Pacific Index declined 0.4 percent.
“European equity markets are set to edge higher on the open following a late surge in the U.S.,” Jonathan Sudaria, a dealer at Capital Spreads in London, wrote. “Another light day on the economic data front and a lack of clear cues is likely to see traders keeping markets range bound.”
European stocks fell yesterday as investors speculated that victory in regional elections for Spain’s Prime Minister Mariano Rajoy reduces pressure for him to seek a bailout, Bloomberg reports.
Moody’s Investors Service, a week after deciding against cutting Spain’s credit-rating to below investment grade, lowered Catalonia and four other Spanish regions. The decision was “driven by the deterioration in their liquidity positions, as evidenced by their very limited cash reserves as of September 2012 and their significant reliance on short-term credit lines to fund operating needs,” the ratings company said.
The benchmark S&P 500 closed higher for the first time in three days, as an advance in Apple Inc. shares overshadowed disappointing corporate results.
Company Results
Third-quarter results at about 69 percent of S&P 500 companies beat analysts’ estimates, according to data compiled by Bloomberg. Sales missed forecasts at 59 percent of companies, the data showed.
Michelin (ML) said third-quarter revenue rose 5.7 percent on higher demand for specialty tires. Sales gained to 5.44 billion euros ($7.11 billion) from 5.14 billion euros a year earlier, the company said. The figure beat the 5.31 billion-euro average of seven analyst estimates compiled by Bloomberg.
Schindler, a manufacturer of elevators, said nine-month net income was little changed at 522 million Swiss francs ($563 million). The company maintained its full-year outlook.
Norsk Hydro ASA (NHY), Europe’s third-largest aluminum maker, reported a loss in the third-quarter as prices for its goods declined.
The net loss was 277 million kroner ($49 million), compared with a profit of 997 million kroner a year earlier, the company said. That surpassed a loss estimate of 142 million kroner in a Bloomberg survey. Sales declined to 19 billion kroner from 23.8 billion kroner.