European Stock-Index Futures Are Little Changed; BHP May Gain

By Michael Patterson

Nov. 28 (Bloomberg) -- European stock-index futures were little changed as a reduced sales target from STMicroelectronics NV offset Merrill Lynch & Co.’s recommendation to buy shares in BHP Billiton Ltd.

STMicroelectronics may move after saying fourth-quarter revenue will be below the company’s earlier prediction because of a slowdown in orders. BHP Billiton rose 7.6 percent in Australia. Retailers might gain after oil declined in New York and a gauge of U.K. consumer sentiment unexpectedly gained. Commerzbank AG may be active after speeding up its takeover of domestic competitor Dresdner Bank by as much as a year.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, lost 2, or 0.1 percent, to 2,430 at 7:19 a.m. in London. The U.K.’s FTSE 100 Index is set to open 35 points higher, according to CMC Markets.

Europe’s Stoxx 600 Index has rallied 12 percent from a five- year low on Nov. 21 and is poised for its best weekly gain since September 2001. Raw-materials producers, construction companies and banks led the advance this week as investors speculated government stimulus packages in Europe and the U.S. will cushion economies from the financial crisis. The gauge is still down 8.3 percent in November, the third straight monthly decline.

Futures on the Standard & Poor’s 500 Index expiring in December rose 0.4 percent. U.S. exchanges were closed yesterday for the Thanksgiving holiday and will be open for a shortened trading session today. The MSCI Asia Pacific Index rose for a fourth day, adding 1.4 percent.

Sales Forecast

STMicroelectronics, Europe’s largest semiconductor maker, said revenue will be $2.2 billion to $2.35 billion, down from $2.7 billion in the previous quarter. That equals a decline of 13 percent to 18 percent, the company said. The previous prediction was that sales would be unchanged to down 8 percent.

BHP Billiton added 7.6 percent to A$31 as Merrill Lynch resumed coverage of the world’s largest mining company with a “buy” recommendation. Rio Tinto Group, the third-biggest, climbed 8.8 percent to A$46.60.

Commerzbank, Germany’s second-biggest lender, sped up its takeover of domestic competitor Dresdner Bank by as much as a year in a revised purchase valued at 5.1 billion euros ($6.6 billion).

ThyssenKrupp AG may be active. Germany’s biggest steelmaker said full-year profit declined 6 percent after building costs overran at its Brazilian plant and stainless steel prices fell.

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