European Stock-Index Futures Climb; Barclays, Daimler May Rise

By Sarah Thompson

July 9 (Bloomberg) -- European stock-index futures rose, following gains in U.S. and Asian equities, as concerns eased banks will post more credit losses and lower oil prices boosted profit outlooks for automakers and airlines.

Barclays Plc and Credit Suisse Group AG may lead financial firms higher after JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said losses in credit markets will ease. U.S.-traded securities of Daimler AG and Air France-KLM Group gained as crude oil traded near a two-week low in New York. Norsk Hydro ASA might increase after Alcoa Inc., the world's third-largest aluminum producer, reported profit that topped analysts' estimates.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 33, or 1 percent, to 3,346 at 7:39 a.m. in London. The U.K.'s FTSE 100 Index may gain 63, according to CMC Markets.

``Investors will enjoy a brief rally today thanks to oil coming off and positive comments from JPMorgan,'' said David Buik, a London-based market analyst at BGC Partners.

U.S. stocks rallied yesterday the most in a month after Dimon said buyers are returning to some types of mortgage products. Asian shares rose the most in almost three months today.

``We have got to a stage within the markets where there is a lot of bad sentiment,'' Lucy MacDonald, London-based chief investment officer of global equities at RCM Ltd., which has $100 billion, said in a Bloomberg Television interview. ``Any positive comment is going'' to produce a bounce, she said.

The Stoxx 600 has lost 23 percent this year as record oil prices, rising inflation and credit-related losses topping $400 billion threaten economic and profit growth.

Barclays

American depositary receipts of Barclays, the U.K.'s fourth-biggest bank, rose 3.8 percent from the close in London. ADRs of Credit Suisse, the second-largest Swiss bank, finished 3.3 percent above the Zurich close.

U.S.-traded securities of Daimler, the world's second- largest luxury carmaker, closed 1.6 percent higher than the finish in Frankfurt yesterday. ADRs of Air France, Europe's biggest airline, ended 1.2 percent above the close in Paris.

The price of crude oil dropped almost 4 percent yesterday as Iran downplayed the possibility of a war and the dollar rose, limiting the appeal of commodities.

Norsk Hydro, Nokia

Norsk Hydro, the world's fourth-largest aluminum producer, may gain.

Alcoa's Chief Executive Officer Klaus Kleinfeld, who took over in May, boosted aluminum prices in the quarter 6.2 percent to an average $3,058 a ton. The increase helped Alcoa post profit excluding certain items of 71 cents a share, topping the 65-cent average estimate of 17 analysts in a Bloomberg survey.

Nokia Oyj may advance. Dresdner Kleinwort raised its recommendation on the world's largest mobile-phone maker to ``buy'' from ``add.''

``The outlook into the second half looks strong, even in a weakening handset market, on the back of numerous new product launches,'' London-based analyst Janardan Menon wrote to clients. ``A high dividend yield and the share buyback program increase the stock's appeal.''

WPP, LSE

WPP Group Plc may fall. The world's second-largest advertising company made a hostile bid of 1.08 billion pounds ($2.13 billion) for Taylor Nelson Sofres Plc as it seeks to combine the market researcher with its Kantar unit.

London Stock Exchange Group Plc will probably gain after Europe's biggest market by value of companies listed said sales rose 8 percent to 178 million pounds in the fiscal first quarter ended June 30, exceeding the 159 million-pound estimate of analysts at Sanford C. Bernstein & Co.

Bovis Homes Group Plc might be active. The U.K.'s most profitable homebuilder said it will cut 40 percent of its workforce and lower its dividend after sales dropped 32 percent in the first half.

Redrow Plc is also likely to move after the U.K. homebuilder with the lowest average selling price said second- half reservations slumped 55 percent and cancellations increased ``significantly'' after mortgage lending dried up.

Tullow Oil Plc might increase after the U.K. explorer with the most licenses in Africa said it performed ``exceptionally well'' in the first half of this year.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.