By Daniela Silberstein
Dec. 11 (Bloomberg) -- European and Asian shares advanced as China’s industrial output grew more than economists estimated. U.S. stock-index futures gained before a report that is forecast to show retail sales increased.
BHP Billiton Ltd., the world’s biggest mining company, added 1.5 percent as commodities rallied. China Construction Bank Corp. rose for the first time in six days after the country’s new loans unexpectedly increased. ING Groep NV surged 5 percent after saying it will repay 5.6 billion euros ($8.3 billion) of government aid.
Europe’s Dow Jones Stoxx 600 Index advanced 0.7 percent to 245.68 as of 8:26 a.m. in London, trimming its weekly drop to 1.3 percent. The gauge has climbed 56 percent since March 9 as central banks cut interest rates to record lows and governments worldwide committed about $12 trillion to revive the economy. The measure is valued at about 55 times its companies’ reported earnings, near the highest level since 2003, data compiled by Bloomberg show.
“The rally we had so far from the March lows will continue into 2010,” Christian Gattiker, Zurich-based head of research and strategy at Bank Julius Baer & Co., which manages about $205 billion, said in a Bloomberg Television interview. The issues in Spain, Greece and Dubai are “just another step in solving this financial crisis.”
European Union leaders say government measures to stimulate the economy should stay in place until the “recovery is fully secured,” according to a draft of the conclusions at a Brussels summit that ends today.
‘Weak Recovery’
“Forecasts suggest a weak recovery in 2010, followed by a return to stronger growth in 2011,” the draft statement by the government heads of the 27-nation EU shows. “But uncertainties and fragilities remain, while the employment and social situation is expected to deteriorate further in 2010,” according to the statement, due to be approved later today.
The MSCI Asia Pacific Index rose 0.9 percent, the steepest gain in six days. Futures on the Standard & Poor’s 500 Index expiring in March added 0.5 percent. The U.S. gauge rose yesterday as reductions in jobless claims and the trade deficit boosted confidence that an economic expansion is increasing.
BHP climbed 1.5 percent to 1,877.5 pence in London as copper gained for the first time in seven days. Gold advanced for a third day.
China Construction Bank, the world’s second-biggest lender by market value, added 0.7 percent to HK$6.84 in Hong Kong, breaking a five-day losing streak. Smaller rival Bank of China Ltd. increased 0.9 percent to HK$4.28.
Chinese Economy
China’s industrial production rose 19.2 percent in November from a year earlier, exceeding the 18.2 percent estimated by economists. New lending grew month-on-month, the People’s Bank of China said today, while economists had forecast a decline.
ING surged 5 percent to 6.33 euros. The largest Dutch financial-services company will repay the government 5.6 billion euros of state aid including a premium and interest. ING received a 10 billion-euro cash injection in 2008 and guarantees on 21.6 billion euros of U.S. mortgage-related assets this year.
Luxottica SpA, the world’s biggest maker of eyeglasses, advanced 1.6 percent to 17.42 euros after Barclays Plc initiated coverage of shares with an “overweight” recommendation.
Sales of U.S. retailers probably rose in November for the third time in the past four months, a sign consumers are joining the emerging recovery, economists said before a government report today. Purchases climbed 0.6 percent after a 1.4 percent gain the prior month, according to the median estimate of 79 economists surveyed by Bloomberg News before Commerce Department figures at 8:30 a.m. in New York.
The Reuters/University of Michigan preliminary index of consumer sentiment for December, due at about 10 a.m., probably rose to 68.8 from a final reading of 67.4 a month earlier, according to the survey median.
To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.
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