European Stock-Index Futures Advance After Fed Minutes
European stock-index futures climbed, indicating equities may rise a second day, as minutes from the latest Federal Reserve meeting showed policy makers expect the inflation rate to remain below their target, and as Chinese manufacturing data beat estimates. U.S. stock-index futures and Asian shares also rose.
Vivendi SA may be active after Activision Blizzard Inc. said the French conglomerate will sell about half of its remaining stake in the video-game maker. Unilever may move after agreeing to sell its North American pasta-sauces business to Mizkan Group. Raiffeisen Bank International AG may be active after posting first-quarter profit that beat analysts’ estimates. SABMiller Plc may move after reporting earnings.
Futures on the Euro Stoxx 50 Index expiring in June gained 0.4 percent to 3,188 at 7:12 a.m. in London. Contracts on the U.K.’s FTSE 100 Index rose 0.3 percent, while Standard & Poor’s 500 Index futures added 0.2 percent. The MSCI Asia Pacific Index jumped 1.2 percent.
The Stoxx Europe 600 Index closed within 0.5 percent of its six-year high reached May 13, pushed up by an increase in deals activity and as European Central Bank President Mario Draghi said policy makers are ready to act next month if necessary.
Fed Meeting
Minutes from the Federal Open Market Committee’s April 29-30 meeting showed that policy makers expect inflation to remain well below their long-term target of 2 percent. Some members also said the Fed should communicate its monetary strategy more clearly as it moves closer towards increasing interest rates.
In China, a preliminary purchasing managers’ index from HSBC Holdings Plc and Markit Economics rose to 49.7 in May, a five-month high. That exceeded the 48.3 median estimate of analysts surveyed by Bloomberg News. April’s final reading was at 48.1. Readings below 50 signal contraction.
Vivendi may be active. It plans to sell 41.5 million shares in Activision by May 28 under an existing agreement, according to a statement. The stake is valued at $866 million based on yesterday’s close.
Unilever may move after agreeing to sell its Ragu and Bertolli brands to Mizkan for $2.15 billion. The sale includes two production facilities.
Raiffeisen may be active after reporting first-quarter net income of 161 million euros ($220 million), exceeding the 128-million euro average of analyst estimate in a Bloomberg survey.
Source: bloomberg
