European Stock-Index Futures Advance After Fed Ends QE
European stock-index futures rose, indicating European equities will extend a two-day gain, after the Federal Reserve judged the U.S. economy strong enough to end its asset-purchase program. U.S. index futures were little changed, while Asian shares retreated.
Bayer AG may be active after posting better-than-expected third-quarter earnings. Linde AG may move after the world’s largest industrial-gases company said it will miss full-year and 2016 profit goals. ASM International NV may be active after posting quarterly revenue and adjusted earnings that topped estimates. Clariant AG may move after reporting an increase in third-quarter profit.
Futures on the Euro Stoxx 50 Index expiring in December climbed 0.3 percent to 3,022 at 7:27 a.m. in London. The Stoxx Europe 600 Index is still 5.8 percent off its September high amid concern that Europe is slipping into a recession and Chinaâs economy is slowing just as the Fed ends bond buying. Contracts on the U.K.’s FTSE 100 Index rose 0.2 percent today. Standard & Poor’s 500 Index futures added 0.1 percent, while the MSCI Asia Pacific Index declined 0.4 percent.
The Fed cited job gains in its decision to wind up the unprecedented bond-buying program, which has suppressed U.S. yields and fueled capital inflows into equities. Officials retained a commitment to keep key interest rates low for a “considerable time.”
Reports at 8:30 a.m. in Washington may show U.S. gross domestic product rose an annualized 3 percent in the third quarter, after expanding 4.6 percent in the previous three months, while jobless claims increased in the week ended Oct. 25, according to the median of economists’ estimates.
Euro Data
Separate data at 11 a.m. in Brussels will show euro-region economic, industrial, consumer and services-sector confidence levels in October. A report at 9:55 a.m. in Nuremberg may show Germany’s jobless rate remained at 6.7 percent, according to economists surveyed by Bloomberg.
Bayer may be active. Germany’s biggest drugmaker reported third-quarter earnings before interest, taxes, depreciation and amortization excluding certain items of 2.01 billion euros ($2.53 billion), topping analyst calls for 1.95 billion euros. Bayer also raised its forecast for the year, citing growing sales of new medicines and the addition of Merck & Co.’s consumer-health business.
Linde may move. The German supplier of oxygen and other gases to hospitals and welders said operating profit will be at a similar level to 2013, with return on capital employed of about 10 percent. Linde had expected a “moderate” improvement in operating profit.
ASMI may be active. The Dutch semiconductor service company posted third-quarter revenue of 122.2 million euros, exceeding the 118 million euros estimated by analysts. Adjusted net income during the period was 60.2 million euros, compared with predictions of 32.9 million euros.
Clariant may move. Ebitda gained 4 percent to 211 million Swiss francs ($220 million), the Switzerland-based chemicals company said. Sales rose 4 percent to 1.51 billion francs.
Source: businessweek-European Stock-Index Futures Advance After Fed Ends QE
