European Stock-Index Futures Are Little Changed; Total May Drop

By Alexis Xydias

Aug. 25 (Bloomberg) -- European stock-index futures were little changed. Total SA and Eni SpA may lead energy companies lower after oil posted its steepest retreat in more than three years.

Deutsche Lufthansa AG and Volkswagen AG may rise on optimism a drop in energy costs will boost profits. Adidas AG may be active after the world's second-largest sporting-goods maker said the Olympic Games in Beijing boosted its first-half sales in China by 60 percent.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, slipped 7, or less than 0.2 percent, to 3,311 at 7:34 a.m. in London. Trading is likely to be below average today as the U.K. is closed for a holiday.

``The move in the oil market is likely to have an effect, with energy stocks weighing on indexes,'' said David Talbot, a trader at IG Markets Ltd. in Melbourne, Australia, in a phone interview. ``We expect a quiet trading day.''

European stocks dropped for a second week last week, as higher oil dimmed the earnings outlook for automakers and retailers and concerns deepened that banks will report more losses. Lower oil triggered the biggest rally in Asian shares in four weeks today, led by carmakers and airlines.

Concern that rising oil prices, accelerating inflation and more than $500 billion in credit-related losses will deepen a global economic slowdown pushed the Stoxx 600, a pan-European benchmark index, down 22 percent this year.

Crude fell more than $6 a barrel on Aug. 22, ending 5.4 percent lower in the day, the most since December 2004. The retreat started as European exchanges were open, and deepened after stock trading ended. Oil traded little changed today.

The dollar rose for a second day against the euro today on speculation the drop in oil prices will support growth in the world's largest consumer of the fuel.

Total, Eni

American depositary receipts of Total, Europe's third- largest oil company, ended 0.5 percent below the stock's price in Paris. ADRs of Eni, Italy's biggest energy company, finished 0.2 percent lower than the shares in Milan.

ADRs of Lufthansa, Europe's second-largest airline, and those of Volkswagen, the region's biggest carmaker, finished above the stocks' prices in Europe.

Adidas may move. The company said China will become its second-biggest market after the U.S. by the end of this year, based on the sales performance in the first six months.

``We are well on track to reach our sales target of more than 1 billion euros ($1.48 billion) in China by 2010,'' Herbert Hainer, chief executive officer of the Herzogenaurach-based company, said in an e-mailed statement.

Commerzbank AG, Germany's second-largest bank by assets, may be close to deciding whether to buy Allianz SE's Dresdner Bank for 9 billion euros, Welt am Sonntag and the Sunday Times reported.

NicOx SA, a French drugmaker developing treatments with Pfizer Inc., said the U.S. pharmaceutical company won't develop an experimental glaucoma medicine after a study in Japan failed to reach its goal.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.