Most European Stocks Rise on Earnings; U.S. Futures Decline

By Adam Haigh

Aug. 29 (Bloomberg) -- Most European stocks rose and Asian shares gained after Carrefour SA and PPR SA reported earnings that topped analysts' estimates and Nintendo Co. raised its profit forecast. U.S. index futures declined.

Carrefour, the world's second-biggest retailer, jumped 5.1 percent, while PPR, the retailer that owns Gucci, climbed 3.8 percent. Nintendo, the maker of Wii video-game console, soared 6.3 percent in Tokyo. Carmakers and technology stocks declined, leaving Europe's Dow Jones Stoxx 600 Index little changed.

The Stoxx 600 slipped less than 0.1 percent to 287.06 at 8:31 a.m., with about six stocks rising for every five that declined. The index has gained 1.2 percent this month. Futures on the Standard & Poor's 500 Index fell 0.2 percent before a report that probably will show consumer spending slowed in July. The MSCI Asia Pacific Index increased 2 percent.

Stocks in the U.S. rallied the most in three weeks yesterday after growth in exports helped the economy expand faster than estimated in the second quarter.

Exporters and banks led a rally in European stocks yesterday that erased this month's losses in the Stoxx 600 after the U.S. economic report signaled businesses are weathering higher inflation and $512 billion in credit-related losses. The regional index has gained 1.2 percent so far in August, headed for its first advance in four months.

Carrefour, PPR

Carrefour jumped 5.1 percent to 35.43 euros. First-half net income from recurring operations totaled 750 million euros, beating the 743 million-euro median of seven analysts in a Bloomberg survey.

PPR climbed 3.8 percent to 79.30 euros after saying first- half profit more than doubled on demand for luxury goods and a gain from selling YSL Beaute. Net income climbed to 779 million euros ($1.15 billion), beating the 327 million-euro median estimate of six analysts surveyed by Bloomberg.

Nintendo jumped 3,000 yen to 50,800 in Osaka, extending gains after the company raised its full-year net income estimate by 26 percent.

JFE Holdings Inc., Japan's No. 2 steelmaker, jumped after the nation's trade ministry said industrial production unexpectedly rebounded.

Japan's factory output increased 0.9 percent in July from the previous month, when it fell 2.2 percent, the government said today. The median estimate of 37 economists surveyed by Bloomberg News was for a 0.3 percent decline.

Daimler, ASML

Daimler AG, the world's second-largest luxury carmaker, lost 1.2 percent to 39.92 euros. PSA Peugeot Citroen, Europe's second-biggest carmaker,

Merrill Lynch & Co. downgraded Peugeot to ``underweight'' from ``neutral,'' saying the company may have to reduce its 2008 operating profit targets as growth slows.

Crude oil is headed for its biggest weekly gain in almost two months as producers evacuated rigs ahead of Gustav, forecast to become the worst Gulf of Mexico hurricane since Katrina. Crude today climbed as much as $1.58, or 1.4 percent, to $117.17 in New York.

Technology stocks declined after Dell Inc., the world's second-biggest maker of personal computers, said the U.S. slump in technology spending has moved to Western Europe and some Asian countries.

ASML Holding NV, Europe's largest manufacturer of semiconductor equipment, fell 1.5 percent to 16.37 euros. STMicroelectronics NV, Europe's biggest chipmaker, retreated 1.5 percent to 8.94 euros.

Dell dropped 10 percent to $22.67 in German trading.

Bouygues

Bouygues SA added 1.8 percent to 41.90 euros after the world's second-biggest construction company reported second- quarter profit net income of 477 million, more than the 466 million euros estimated in a Bloomberg survey. Bouygues raised its full-year sales target to 32.5 billion euros, from 32.4 billion euros previously.

Profit among companies in the Stoxx 600 will decline 2 percent on average in 2008, according to data compiled by Bloomberg. That's down from 11 percent growth forecast at the start of 2008, the data show.

L'Oreal SA fell 1.5 percent to 68.78 euros. The world's largest cosmetics maker said first-half profit rose 6.8 percent, the slowest growth in three years, as European and U.S. shoppers pared spending on makeup and perfumes.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net