European stocks rose for a second day as investors awaited the European Central Bank’s rate decision and weighed company earnings. Asian shares and U.S. stock-index futures also advanced.
Daimler AG gained 3.4 percent after posting a 45 percent surge in quarterly profit. Volvo (VOLVB)AB climbed 4.8 percent after reporting operating profit that beat projections and saying it will cut 4,400 jobs. Credit Suisse Group AG (CSGN) fell 1.1 percent after posting fourth-quarter profit that missed estimates as it took legal provisions related to U.S. tax and mortgage matters.
The Stoxx Europe 600 Index added 0.5 percent to 319.52 at 8:07 a.m. in London. Standard & Poor’s 500 Index futures gained 0.3 percent. The MSCI Asia Pacific Index rose 0.4 percent for a second day of gains.
“Some signs that markets are calming down, although that could easily be disrupted if Mr Draghi fails to deliver a clear message at today’s ECB press conference, or if Friday’s U.S. labor market numbers continue to be sucked into a polar vortex,” Ian Williams, a market strategist at Peel Hunt LLP in London, wrote in a note to clients today.
The ECB meets to discuss monetary policy today. Sixty-two out of 66 economists in a survey said the bank will keep its benchmark rate at a record-low 0.25 percent when it announces its decision at 1:45 p.m. Frankfurt time. President Mario Draghi will hold a press conference 45 minutes later.
The Bank of England will also probably keep its benchmark rate at a record-low 0.5 percent when it meets today, a separate Bloomberg survey showed.
The Stoxx 600 rose yesterday as investors weighed data that showed U.S. services-industries growth accelerated, while employers in the world’s largest economy hired fewer workers than estimated. The equity benchmark has fallen 2.7 percent so far this year amid a selloff in emerging-market currencies, signs of slowing economic growth in China and declining stimulus from the Federal Reserve.
In the U.S., a Labor Department report at 8:30 a.m. New York time may show initial claims for jobless benefits fell to 335,000 in the week ended Feb. 1 from 348,000 the previous week, according to a Bloomberg survey.
Data tomorrow may show the U.S. gained 183,000 jobs last month, after an increase of 74,000 in December, while unemployment held at 6.7 percent, according to the median forecast of economists surveyed by Bloomberg.
Daimler rose 3.4 percent to 62.94 euros. The third-largest maker of luxury vehicles said earnings before interest and taxes from ongoing operations rose to 2.53 billion euros ($3.42 billion) from 1.74 billion euros a year earlier. That beat the 2.37 billion-euro average estimate of 15 analysts compiled by Bloomberg. Revenue gained 7.6 percent to 32.1 billion euros on demand for the new Mercedes-Benz CLA coupe and revamped flagship S-Class sedan.
Volvo advanced 4.8 percent to 89.60 kronor. The world’s second-biggest truckmaker reported fourth-quarter operating profit of 3.08 billion kronor ($471 million), exceeding analysts’ projections for 2.04 billion kronor. Volvo also said it will cut 4,400 employees, extending a previously announced reduction of 2,000 jobs. The majority of the cuts will take place in 2014.
Alcatel-Lucent SA jumped 7.3 percent to 3.25 euros. The French network-equipment vendor posted its first quarterly profit in two year, saying fourth-quarter net income was 134 million euros, compared with a 1.56 billion-euro loss a year earlier. The Paris-based company also said it got a binding offer from China Huaxin for its business that sells telecommunications equipment and services. Alcatel will keep a 15 percent stake in the unit.
Credit Suisse lost 1.1 percent to 26.75 Swiss francs. The second-biggest Swiss bank said net income totalled 267 million francs ($295 million). That compares with a 263 million-franc profit a year earlier and the 398 million-franc average estimate of 12 analysts surveyed by Bloomberg. The Zurich-based lender took legal provisions related to U.S. tax and mortgage matters.
HeidelbergCement AG fell 0.8 percent to 54.87 euros. The world’s third-largest maker of cement reported fourth-quarter profit that missed analyst estimates as the strengthening euro outweighed the impact of a profit improvement program.-Bloomberg
