European Stocks Fluctuate; Asian Shares Climb on Bank of China

By Adria Cimino

Oct. 30 (Bloomberg) -- European stocks fluctuated with the Dow Jones Stoxx 600 Index poised for its first monthly decline since June. Asian shares climbed as earnings at Bank of China Ltd. beat analysts’ estimates.

Fortis rose 1.5 percent after Deutsche Bank AG recommended the stock. Alcatel-Lucent SA slid 6 percent after reporting a wider-than-estimated loss. Bank of China gained 5.8 percent in Hong Kong.

The Stoxx 600 slipped 0.3 percent to 241.03 at 8:22 a.m. in London. The gauge has lost 0.6 percent in October and 1.6 percent this week amid speculation that an almost eight-month, 53 percent rebound has outpaced the prospects for earnings and economic growth. Equities in Europe and the U.S. rebounded yesterday on data that showed that the American economy returned to growth after the worst contraction in seven decades.

“For the next two to three months, we could go through a sideways-moving market,” said Bob Parker, who helps manage about $600 billion as vice chairman of Credit Suisse Asset Management in London. “There are downside risks given the extent of the rally. That said, in 2010 equities will be the top performing asset class.”

The MSCI Asia Pacific Index rallied 1.5 percent. Standard & Poor’s 500 Index futures slipped 0.5 percent after the benchmark index for U.S. equities climbed 2.3 percent yesterday. The gauge has still lost 1.3 percent this week, heading for its second straight weekly decline.

Fortis, Alcatel

Fortis advanced 1.5 percent to 3 euros. The owner of Belgium’s largest life insurer was rated “buy” in new coverage at Deutsche Bank.

Alcatel-Lucent slid 6 percent to 2.70 euros. The world’s largest supplier of fixed-line phone networks reported a third- quarter loss of 182 million euros ($270 million). That missed the 174.4 million-euro loss average of eight estimates compiled by Bloomberg.

Bank of China gained 5.8 percent to HK$4.58. The nation’s third-largest lender said third-quarter profit rose 19 percent to 21.1 billion yuan ($3.09 billion), beating the average estimate of 20.52 billion yuan of eight analysts compiled by Bloomberg.

Renault SA advanced 2.8 percent to 31.96 euros. France’s second-largest carmaker said third-quarter revenue declined 11 percent to 8.1 billion euros as the global economic slump hurt demand and a stronger euro diminished the value of overseas sales.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.