European Stock Futures Rise on Commodity Rally; BHP May Advance

By Michael Patterson

Aug. 14 (Bloomberg) -- European stock-index futures climbed as a rebound in commodity prices improved the profit outlook for energy and mining companies.

Total SA and BP Plc may follow gains in their U.S.-traded securities after a drop in gasoline inventories sent crude oil higher for a second day. BHP Billiton Ltd., the world's largest mining company, may rise after a jump in gold that helped push the Reuters/Jefferies CRB Index to its biggest advance since June yesterday. InBev NV and ThyssenKrupp AG may be active on better-than-estimated earnings.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, gained 12, or 0.4 percent, to 3,380 at 7:38 a.m. in London. The U.K.'s FTSE 100 Index may increase 30, according to CMC Markets, a betting firm.

``Crude prices are ticking higher on the back of the inventory data,'' Paul Webb, chief dealer at CMC Markets in London, wrote in a note to clients. ``This will offer some welcome relief to the petrochemicals heavyweights.''

U.S. stocks dropped yesterday as earnings from Deere & Co. disappointed investors, retail sales declined and Merrill Lynch & Co. said the contagion from the collapse of the subprime mortgage market is far from over. The Standard & Poor's 500 Index briefly erased its retreat in the final hour of trading as a gain in oil prices spurred a rally in energy shares.

Financial shares led Asian markets lower today.

More than $12 trillion has been erased from global equity markets this year as credit-related losses topping $500 billion and accelerating inflation threaten economic and profit growth.

German Economy

A report today showed the German economy shrank for the first time in four years. Another report later will probably show gross domestic product in the 15 nations that share the euro contracted in the second quarter for the first time since the launch of the single currency almost a decade ago.

The euro-area figures are scheduled to be released at 11 a.m. Frankfurt time.

American depositary receipts of Total, Europe's third- biggest oil company, ended 1.6 percent higher than the close in Paris yesterday. ADRs of BP, the region's second-biggest, finished 1.4 percent above the London close. BHP Billiton's ADRs closed 4 percent higher than in London.

Crude oil for September delivery rose as much as 0.8 percent to $116.96 a barrel in New York after a U.S. Energy Department report yesterday showed a bigger-than-forecast decline in inventories of gasoline as refiners shut units and imports fell. Futures gained 46 cents today.

The CRB index rose 9.16, or 2.4 percent, to 393.16 in New York trading yesterday, with most of the gain coming after European markets closed. Gold and silver prices extended their rally today, rising 0.7 percent and 0.5 percent, respectively.

InBev

InBev may move after the Belgian brewer that's buying Anheuser-Busch Cos. reported an unexpected gain in second- quarter earnings. InBev said it expects profitability to increase in the second half.

ThyssenKrupp, Germany's largest steelmaker, said net income fell to 573 million euros ($853 million) after costs overran on the construction of its Brazilian plant and prices were outpaced by raw material costs. The results still topped the 531 million- euro estimate of analysts compiled by Bloomberg.

Salzgitter AG, Germany's second-largest steelmaker, said first-half profit gained 9.6 percent after prices rose. Sales climbed 32 percent.

Rising credit losses, higher inflation and the economic slowdown have prompted analysts to slash profit estimates this year.

Hochtief, RWE

Hochtief AG may advance after Germany's largest builder reported a jump in second-quarter profit and raised its full- year forecasts on construction and mining work in Australia and Asia.

Earnings for companies in the Stoxx 600 will slide 2.5 percent in 2008, according to analysts' estimates compiled by Bloomberg. That's down from 11 percent growth forecast at the start of the year.

RWE AG might move. Germany's second-biggest utility said second-quarter net income dropped to 347 million euros from 1.06 billion euros a year earlier on higher costs to emit carbon dioxide and lower power grid fees, according to Bloomberg calculations. That missed the 742.5 million-euro median estimate of eight analysts surveyed by Bloomberg.

L'Oreal SA may fall. The world's biggest cosmetics maker was downgraded to ``underweight'' from ``equal-weight'' by Morgan Stanley analysts, who said the stock price is ``unjustified'' because of the ``downside risk'' to earnings estimates.

Credit Suisse, BMW

Credit Suisse Group AG might move. Merrill Lynch & Co. analysts downgraded Switzerland's second-largest bank to ``underperform'' from ``neutral,'' saying they ``worry about more writedown warnings.''

Bayerische Motoren Werke AG, the world's largest maker of luxury cars, was cut to ``sell'' from ``hold'' at Citigroup Inc., which said slower sales and rising raw-materials costs may reduce profits.

Swiss Life Holding might fall. Switzerland's biggest life insurer agreed to buy stakes in MLP AG and AWD Holding AG from AWD Chief Executive Officer Carsten Maschmeyer for a total of 427 million euros.

To contact the reporter on this story: Michael Patterson in London at mpatterson10@bloomberg.net.