European Stocks Rise Before U.S. Data as Tesco Rallies
European stocks rose the most in three weeks as investors weighed earnings reports and awaited data that may show American housing and industrial activity increased. U.S. index futures and Asian shares climbed.
Tesco Plc advanced the most since 2012 after reporting trading profit that exceeded projections. Syngenta AG (SYNN) gained 1.7 percent after posting first-quarter revenue that met analysts’ estimates and confirming its full-year sales target. Credit Suisse Group AG dropped 1.9 percent after saying quarterly profit fell 34 percent. ASML Holding NV tumbled the most since October 2012 after Europe’s largest semiconductor-equipment supplier forecast second-quarter sales below projections.
The Stoxx Europe 600 Index advanced 0.9 percent to 329.54 at 8:08 a.m. in London. The benchmark gauge slid 1 percent yesterday as Ukraine accused Russia of deploying troops inside its territory and as German investor confidence fell for a fourth month. The gauge is little changed for the year. Standard & Poor’s 500 Index futures rose 0.4 percent today, while the MSCI Asia Pacific Index added 0.9 percent.
A U.S. report at 8:30 a.m. in Washington may show housing starts rebounded to a 970,000 annualized pace in March, the first increase in four months, from a 907,000 rate in the previous month, according to the median forecast of economists surveyed by Bloomberg. Separate data at 9:15 a.m. may show industrial production increased in March.
U.S. Gains
In New York yesterday, the S&P 500 climbed 0.7 percent, reversing a loss of 0.8 percent, as earnings from Coca-Cola Co. and Johnson & Johnson outweighed concerns that tensions in Ukraine are worsening.
Federal Reserve Chair Janet Yellen will address the Economic Club of New York after the close of European markets. The U.S. central bank will also release its economic survey known as the Beige Book.
A report from China showed the world’s second-largest economy posted faster-than-expected growth in the first quarter. Another release showed industrial-output growth in March missed projections.
Tesco climbed 4 percent to 297.8 pence. The U.K.’s largest retailer reported group trading profit of 3.32 billion pounds ($5.6 billion) in the year through Feb. 22, exceeding the 3.23 billion pounds projected by analysts.
Syngenta gained 1.7 percent to 342.2 Swiss francs. The world’s largest maker of crop chemicals said quarterly sales rose 5 percent to $4.68 billion, in line analysts’ estimates.
BHP Outlook
BHP Billiton Ltd. rose 1.5 percent to 1,928 pence. The world’s biggest mining company raised its full-year iron-ore production guidance after third-quarter output gained 23 percent to beat analyst expectations.
Burberry Group Plc gained 1.3 percent to 1,440 pence. The U.K.’s largest luxury-goods maker said second-half comparable sales increased 12 percent, surpassing the 10.5 percent increase estimated by analysts.
Credit Suisse lost 1.9 percent to 27.31 francs. The second-biggest Swiss bank said lower investment-bank profit led to a drop in first-quarter net income to 859 million francs ($976 million). That missed the 1.09 billion-franc average estimate in a Bloomberg survey.
ASML (ASML) declined 5.8 percent to 58.20 euros. Revenue this quarter will be about 1.6 billion euros ($2.2 billion), the company said. Analysts predict 1.7 billion euros, the average of projections compiled by Bloomberg.
Source: bloomberg
