European Central Bank
European stocks rose for a second day as companies reported earnings that exceeded analysts’ estimates. Asian shares and U.S. futures advanced.
Akzo Nobel NV (AKZA) and Novartis AG (NOVN) climbed after posting second- quarter results that beat forecasts. Remy Cointreau (RCO) SA, France’s second-biggest distiller, gained 5.1 percent on higher earnings.
The Stoxx Europe 600 Index (SXXP) added 0.5 percent to 260.25 in London. Shares have climbed 11 percent from this year’s low on June 4 as the European Central Bank and People’s Bank of China cut their benchmark interest rates and euro-area leaders eased repayment rules for Spanish banks. The MSCI Asia Pacific Index advanced 1.5 percent, while contracts on the Standard & Poor’s 500 Index rose 0.3 percent.
European stocks added 1.1 Wednesday after lenders including Credit Suisse Group AG reported profits that beat expectations.
The U.S. economy expanded at a “modest to moderate” pace in June and early July, as retail sales and manufacturing cooled in some regions, the Federal Reserve said yesterday in its Beige Book business survey, which is based on reports from its 12 district banks.
“Upbeat remarks on the U.S. economy by Fed head Ben Bernanke Wednesday support the risk-on tone across global markets,” Ishaq Siddiqi, a market strategist at ETX Capital in London, wrote in a note.
Sales of previously owned homes in the U.S. probably rose in June, a report may show today. Purchases climbed 1.5 percent last month to a 4.62 million annual rate, matching April as the fastest since January, according to the median forecast of 76 economists surveyed by
Bloomberg News. Jobless claims increased last week, another report may show.
Spain will sell as much as 3 billion euros ($3.7 billion) of debt today as rising borrowing costs threaten access to capital markets for Prime Minister Mariano Rajoy’s government.
Akzo Nobel, the world’s largest paintmaker, advanced 4.8 percent to 42.45 euros after it said second-quarter earnings before interest, taxes, depreciation and amortization increased 8 percent to 593 million euros. Analysts predicted 569 million euros.
Novartis rose 0.6 percent to 55.40 Swiss francs after it reported second-quarter profit that beat analysts’ forecasts. Earnings excluding some costs declined 6 percent to $3.36 billion, or $1.38 a share, from $3.6 billion, or $1.48 a year ago, the Basel, Switzerland-based company said in a statement today. Analysts predicted profit of $1.33 a share, the average of 14 estimates compiled by Bloomberg.
Remy Cointreau climbed 5.1 percent to 92.28 euros, the highest since at least Oct. 1989, after it reported increased first-quarter sales that beat analyst expectations as consumers in Asia and the U.S. bought more Remy Martin cognac.