By Adria Cimino
Nov. 14 (Bloomberg) -- European stock-index futures advanced, indicating the Dow Jones Stoxx 600 Index will trim this week's decline, as rising oil and metals prices bolstered earnings outlooks for energy and commodity producers.
U.S.-traded securities of BP Plc, Europe's second-largest oil company, rose after oil increased more than 3 percent yesterday. BHP Billiton Ltd., the world's biggest mining company, climbed 5.6 percent in Australia. Vivendi SA, owner of the world's largest music company, may gain after repeating an earnings forecast. European Aeronautic, Defence & Space Co. may be active after returning to profit.
Futures on the Euro Stoxx 50, a benchmark for the euro region, added 98, or 4 percent, to 2,525 at 7:35 a.m. in London. The U.K.'s FTSE 100 Index may increase 177, according to Cantor Index, a betting firm.
U.S. stocks yesterday rallied the most in two weeks, with the Standard & Poor's 500 Index jumping 6 percent in the final hour, as investors snapped up the cheapest energy shares on record. The MSCI Asia Pacific Index added 0.8 percent.
``A significant turn around on Wall Street in the latter part of yesterday's session is set to lift spirits in Europe,'' Matthew Buckland, a dealer at CMC Markets in London, wrote.
Standard & Poor's 500 Index futures lost 0.6 percent today before a report that may show sales at U.S. retailers fell in October by the most since the 2001 recession. Nordstrom Inc. and Kohl's Corp. cut their earnings forecasts as profit declined. The MSCI Asia Pacific Index gained 0.6 percent.
$30 Trillion
More than $30 trillion has been erased from the value of global equity markets this year as credit losses and writedowns totaled $959 billion in the worst financial crisis since the Great Depression.
Europe's is down 7.1 percent this week as Germany slid into a recession, the OECD forecast a global economic slump and profit outlooks worsened.
A report today will probably show Europe's economy fell into its first recession in 15 years in the third quarter, paving the way for deeper cuts to interest rates and taxes. Gross domestic product in the 15 euro nations shrank 0.2 percent in the third quarter from the previous three months, when it also contracted 0.2 percent, according to the median estimate of 39 economists in a Bloomberg News survey.
The European Union's Luxembourg-based statistics office is scheduled to publish the euro-area GDP data at 11 a.m. today.
BP, Shell
American depositary receipts of BP rose 6.7 from the stock's close in the U.K. ADRs of Royal Dutch Shell Plc, Europe's biggest oil company, closed 6.4 percent higher.
Crude oil climbed 3.7 percent yesterday to $58.24 a barrel on the New York Mercantile Exchange. It traded at $57.92 today.
BHP added 5.6 percent in Australia. Copper jumped by the exchange-imposed daily limit in Shanghai as a drop in the dollar may boost Chinese demand for raw materials. Copper, lead, nickel and tin advanced in London.
Vivendi repeated a forecast of full-year adjusted net income excluding the effect of acquisitions to rise at a pace similar to the 8.3 percent increase of 2007. Third-quarter profit fell 13 percent, missing analysts' estimates, on costs for acquisitions in its phone and video-game divisions.
EADS returned to profit in the first nine months of 2008 as its Airbus unit delivered more A380 superjumbo airliners and it had no repeat of charges for delays of the A400M military transport plane. Net income was 1.08 billion euros ($1.38 billion), surpassing analysts' estimates. EADS said it may beat its full-year forecast for earnings before interest and tax of 1.8 billion euros.
Credit Agricole
Credit Agricole SA, France's third-largest bank by market value, said profit fell 62 percent to 365 million euros in the third quarter on writedowns tied to U.S. bond insurers and the impact of Lehman Brothers Holdings Inc.'s failure. Earnings beat the 153 million-euro median estimate of 13 analysts surveyed by Bloomberg.
Dexia SA, the world's largest lender to local governments, agreed to sell its U.S. bond insurance business to Assured Guaranty Ltd. for a total of $722 million. Dexia had a third- quarter net loss of 1.54 billion euros, the bank said. That missed the median estimate of a 656 million-euro loss from seven analysts surveyed by Bloomberg News.
Logica Plc, the Anglo-Dutch computer-services provider, raised its full-year sales forecast for the second time in three months on new orders from British phone company BT Group Plc and Norwegian retailer Reitan Narvesen ASA.
Vinci, Continental
Vinci SA, the world's biggest builder, said third-quarter sales rose 10 percent and maintained its full-year growth target after expanding in energy services to counter a slowdown in toll-road revenue. Revenue increased to 8.96 billion euros from 8.14 billion euros a year earlier, the company said. Analysts estimated 8.65 billion euros, according to a Bloomberg survey.
Earnings for companies in the Stoxx 600 will fall 8.4 percent this year, according to data compiled by Bloomberg News. That compares with an estimate for 11 percent growth at the start of the year.
TUI Travel Plc, Europe's largest travel company, said it has reduced capacity to raise prices and reach margin targets as demand across Europe weakens. Capacity for the winter season has been cut by 9 percent in the U.K., 14 percent in Germany and 8 percent in Western Europe, the Crawley, England-based company said today in a Regulatory News Service statement.
Continental AG was cut to ``sell'' from ``hold'' at Citigroup Inc., which cited the ``extended indebtedness'' of Europe's second-largest auto-parts maker and its acquirer Schaeffler Group amid declines in car production.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
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