European Stock-Index Futures Rise; Land Securities May Advance

By Adam Haigh

Jan. 19 (Bloomberg) -- European stock futures rose, indicating the Dow Jones Stoxx 600 Index will gain for a second day, on speculation government efforts to stabilize the banking system will shore up investor confidence.

Barclays Plc may advance after saying 2008 earnings will exceed analysts’ forecasts. The Bank of England will set up a facility to make purchases of up to 50 billion pounds ($74 billion) for banks’ toxic assets. Land Securities Group Plc may climb after UBS AG advised clients to buy the stock.

“The main focus will the U.K. banks as the government announces these measures,” said Matt Buckland, senior trader at spread betting firm CMC Markets in London. “All the direction will be coming from the banks.”

Futures on the Euro Stoxx 50 Index, a benchmark for the euro region, added 19, or 0.8 percent, to 2,310 at 7:37 a.m. in London. The U.K.’s FTSE 100 Index is set to open 66 points higher, according to IG Markets. Stock markets in the U.S. are closed today for the Martin Luther King Jr. holiday.

Europe’s Stoxx 600 is poised to rise for a second day following its seven-day tumble as companies from Deutsche Bank AG to Alcoa Inc. fueled concern earnings will deteriorate, dragging the gauge 10 percent lower.

The U.K. Treasury announced a plan to guarantee and purchase banking assets. The government also will offer “capital and asset-protection” for banks in conjunction with other nations.

The asset facility “provides a framework for the Monetary Policy Committee of the Bank of England to use asset purchases for monetary policy purposes should the MPC conclude that this would be a useful additional tool for meeting the inflation target,” the statement said.

Danish Banks

Denmark is also expanding its financial rescue package by advancing the country’s banks and mortgage institutions 100 billion kroner ($17.8 billion) in loans as the government struggles to avert a protracted recession.

Barclays, the U.K. bank that turned down government funding last year, said its 25 percent share-price slump on Jan. 16 was unjustified.

Royal Bank of Scotland Group Plc may fall after saying it expects to post a full-year loss before exceptional goodwill impairments of as much as 8 billion pounds. The bank plans to raise 5 billion pounds from investors to replace the U.K. Treasury’s preference shares.

Land Securities might advance after UBS raised its recommendation on the stock to “buy” from “neutral,” saying investors should look for a “maintained” dividend at Britain’s largest real-estate investment trust.

German Utilities

E.ON AG and RWE AG, Germany’s biggest utilities, may rise after Royal Bank of Scotland Group rated the stocks “buy” in new coverage, saying “operational performance should remain healthy.”

Cie. Financiere Richemont SA will probably fall after the world’s largest jewelry maker said third-quarter sales declined 7 percent as customers in Europe and North America reduced spending on Cartier necklaces and Chloe fashions.

Deutsche Post AG will probably move after reporting operating profit of 2.4 billion euros ($3.2 billion) for 2008, slightly above its goal.

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