European Stock-Index Futures Climb; BHP Billiton, Rio May Gain

By Sarah Jones

Nov. 10 (Bloomberg) -- European stock-index futures gained, indicating the Dow Jones Stoxx 600 Index may extend its longest winning streak in two months. Asian shares rose as Chinese car sales jumped and exports improved in Taiwan and the Philippines.

BHP Billiton Ltd., the world’s largest mining company, and Rio Tinto Group rallied in Sydney as gold traded near a record in Asia. Vodafone Group Plc will probably be active as the world’s biggest mobile-phone company reported a 2.9 percent increase in first-half operating profit. Barclays Plc may move after the U.K.’s second-largest bank reported lower third- quarter earnings.

Futures on the Euro Stoxx 50, a benchmark index for the euro region, added 0.3 percent at 7:28 a.m. in London. The U.K.’s FTSE 100 Index may rise 20, according to BGC Partners.

“The upward momentum is set to continue,” said Ben Potter, a Melbourne-based research analyst at IG Markets. “The miners specifically found support and this is adding to the general feel-good factor for equities.”

European shares yesterday climbed the most in three weeks and U.S. stocks surged after the Group of 20 nations agreed to maintain economic stimulus efforts. Asian stocks advanced for a third day today.

Even so, the global rally in equities lost pace in October on concern the rebound has gone too far relative to the prospects for economic growth. The Stoxx 600 is up 56 percent since March 9 even after dropping 2.3 percent last month.

Futures on the U.S. Standard & Poor’s 500 Index expiring in December slipped 0.3 percent today, while the MSCI Asia Pacific Index advanced 0.3 percent.

Vodafone, Barclays

BHP increased 2.3 percent to A$38.49 in Sydney as gold traded within half a percent of its record in Asia as a slumping dollar increased investor appetite for the bullion as a store of value. Rio Tinto, the world’s third-biggest mining company, gained 2.6 percent to A$67.45.

Vodafone may move. Earnings before interest, taxes, depreciation and amortization, or Ebitda, rose to 7.46 billion pounds ($12.4 billion) from 7.24 billion pounds a year earlier. The company also plans more cost cuts.

Barclays will probably be active after the lender reported a 54 percent drop in third-quarter profit to 1.08 billion pounds as impairment charges climbed. Impairments for the full year are “expected to be around the bottom end of the previously referenced 2009 consensus range of 9 billion pounds to 9.6 billion pounds,” the bank said today.

Volkswagen Stake

Volkswagen AG may move after Qatar Holding LLC, part of the country’s sovereign wealth fund, announced plans to sell as much as 25 million of its preferred shares in the German carmaker, or about half its total stake.

The fund still plans to increase its holdings in Volkswagen’s common shares to 17 percent. Units of Credit Suisse Group AG and Goldman Sachs Group Inc. will act as joint bookrunners in the sale of preferred shares.

Strategists at Credit Suisse today recommended investors increased their holdings in mainland European shares, upgrading the region to “overweight” from “underweight.”

“Continental Europe tends to outperform when both global lead indicators rise and earnings are being revised up, a combination we expect to continue into the first half of 2010,” strategists including Andrew Garthwaite wrote in a report dated today. “Europe tends to outperform when interest rate expectations start to rise.”

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.