European stocks climbed for a second day amid speculation that China and the euro area will do more to bolster economic growth. U.S. index futures were little changed, while Asian shares rose.
Vodafone Group Plc (VOD) gained 1.8 percent after posting quarterly service revenue that beat analysts’ estimates. CRH Plc rose 1.5 percent after the shares were upgraded at Credit Suisse Group AG. Sonova Holding AG (SOON) plunged 6.1 percent, its biggest decline in nine months, after reporting full-year earnings that missed analysts’ forecasts.
Enlarge image European Stocks Advance; Vodafone Shares Climb
A pedestrian passes a Vodafone Group Plc communications store. Photographer: Akos Stiller/Bloomberg
The Stoxx Europe 600 Index gained 0.7 percent to 241.91 at 8:42 a.m. in London. Contracts on the Standard & Poor’s 500 Index expiring in June climbed 0.2 percent. The MSCI Asia Pacific Index jumped 1.3 percent.
“Some traders may be getting their hopes up on stories that euro bonds will make an appearance on the agenda at this Wednesday’s European Union summit, but given Germany’s resolute opposition to such a move this may be wishful thinking and any gains short lived,” Jonathan Sudaria, a trader at Capital Spreads in London, wrote in a note to clients.
The Stoxx 600 increased 0.5 percent yesterday, its biggest rally since May 10, as China pledged to boost growth, outweighing concern that Greece will have to leave the euro area following its new election.
Germany’s Chancellor, Angela Merkel, said she may disagree with France’s President, Francois Hollande, on how to tackle the sovereign-debt crisis at a meeting on May 23.
Cooperation “doesn’t exclude differing positions,” Merkel told reporters yesterday in Chicago during a meeting of the North Atlantic Treaty Organization. “These may very well arise in the context of the European discussions.”
Schaeuble-Moscovici Meeting
Germany will consider all ideas on bolstering euro-area growth, Finance Minister Wolfgang Schaeuble said as he and his French counterpart, Pierre Moscovici, met.
“We will engage all ideas constructively and find solutions in order to strengthen sustainable growth,” Schaeuble said after meeting Moscovici for the first time yesterday in Berlin. Moscovici, who became finance minister last week, said Hollande wants “everything on the table,” including joint euro-area bonds, at a meeting of European leaders tomorrow.
In the U.S., a report at 10 a.m. in Washington will probably show that sales of existing houses increased in April for the first time in three months, according to economists.
Purchases climbed 2.9 percent to a 4.61 million annual rate last month, according to the median forecast of 73 economists survey2ed by Bloomberg News. That would be just shy of the 4.63 million reached in January that was the most in more than a year.
China’s Infrastructure Spending
China plans to speed up approval of infrastructure projects and allocate construction funding faster to aid growth, the China Securities Journal reported.
Vodafone gained 1.8 percent to 168 pence. Europe’s largest mobile-phone company said fourth-quarter service revenue excluding currency swings and acquisitions gained 2.3 percent. It rose 0.9 percent in the previous quarter. Analysts had estimated growth of 1.7 percent.
Earnings before interest, taxes, depreciation and amortization in the 12 months through March dropped to 14.5 billion pounds ($23 billion) from 14.7 billion pounds a year earlier, the company said. The average estimate of analysts in a Bloomberg survey had called for 14.5 billion pounds.
Marks & Spencer, Accor
Marks & Spencer Group Plc (MKS) increased 1.1 percent to 342 pence after reporting that full-year pretax profit retreated 1.2 percent to 705.9 million pounds. Analysts had estimated 693 million pounds. The U.K.’s largest clothing retailer said sales will grow 1.1 billion pounds to 1.7 billion pounds by fiscal 2014.
Accor SA (AC) surged 6.2 percent to 26.13 euros, its biggest advance in three months. Europe’s biggest hotel operator said it will sell its budget U.S. chain Motel 6 to a fund managed by Blackstone Group LP for $1.9 billion to pay down debt.
Rio Tinto Group, the world’s third-biggest mining company, climbed 2.2 percent to 2,884 pence. Copper headed toward its highest price in a week.
CRH (CRH), the world’s second-biggest building-materials maker, rose 1.5 percent to 14.03 euros. Credit Suisse upgraded the shares to neutral from underperform.
Sonova tumbled 6.1 percent to 87.60 Swiss francs. The Swiss maker of Phonak hearing aids reported full-year earnings that missed analysts’ estimates as the strength of the Swiss franc reduced the value of sales from outside its domestic market.
Homeserve Plc plunged 24 percent to 172.3 pence, its lowest price in more than three years. The Financial Services Authority has begun an investigation of the U.K.-based emergency-repair service provider’s past-selling practices. The company also reported full-year profit of 114.3 million pounds, beating analysts’ estimates.
The volume of shares changing hands on the Stoxx 600 was 22 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.
