By Adria Cimino
June 26 (Bloomberg) -- European stock futures rose, indicating the Dow Jones Stoxx 600 Index will trim its second straight weekly decline. Asian stocks advanced, while U.S. futures slipped.
Michelin & Cie. may climb after Bridgestone Corp., the world’s largest tiremaker, narrowed its loss forecast. U.S.- traded shares of BP Plc, Europe’s second-biggest oil company, increased as crude rose. UBS AG, the European bank with the steepest credit-crisis losses, may be active after raising $3.5 billion in a share sale.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 0.7 percent to 2,416 at 7:13 a.m. in London. The U.K.’s FTSE 100 Index may increase 27, according to Cantor Index, a betting firm.
A rally by Bridgestone helped send the MSCI Asia Pacific Index up 1.3 percent, extending the gauge’s weekly gain to 1.6 percent.
Futures on the Standard & Poor’s 500 Index slipped 0.3 percent. U.S. stocks advanced the most in three weeks yesterday as investors bet that Ben S. Bernanke’s defense of emergency measures to rescue Merrill Lynch & Co. bolstered his chances of remaining Federal Reserve chairman.
Europe’s Stoxx 600 has lost 1.7 percent this week, heading for its first back-to-back weekly declines since the start of a three-month rebound in March. The World Bank predicted the global recession will be deeper this year than it forecast in March, while European Central Bank council member Axel Weber said the bank has used up its room to cut interest rates.
‘Green Shoots’
“There are doubts over the sustainability of these green shoots of recovery we keep hearing about,” Matthew Buckland, a dealer at CMC Markets in London, wrote. “The fact that oil has broken back above the $70 mark may offer some support for the petrochemicals sector.”
The Stoxx 600 has lost 4.7 percent since June 11 amid speculation share prices have outpaced the outlook for economic growth after a three-month, 36 percent rally drove valuations to 25.4 times earnings, the highest level since 2004.
Michelin, the world’s second-biggest tiremaker, and Continental AG, Europe’s second-largest auto-parts maker, may climb. Bridgestone narrowed its first-half net loss forecast to 46 billion yen ($480 million) from 62 billion yen, citing reduced costs. Bridgestone climbed 8.5 percent in Tokyo.
American depositary receipts of BP added 1.3 percent from the stock’s close in London. ADRs of StatoilHydro ASA, Norway’s biggest oil and gas producer, advanced 1 percent.
Crude oil rose for a second day, exceeding $70 a barrel. The contract for August delivery gained as much as 0.8 percent on the New York Mercantile Exchange.
UBS may be active. The Zurich-based lender raised about 3.8 billion Swiss francs ($3.5 billion) by selling shares to boost capital and said it expects a second-quarter loss.
Deutsche Bank AG, Germany’s biggest bank, was upgraded to “buy” from “neutral” at UBS.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
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