European Stocks, U.S. Futures Rise Before Economic Reports

By Adria Cimino

Dec. 23 (Bloomberg) -- European stocks rose, sending the the Dow Jones Stoxx 600 Index to a 14-month high, before reports that may show U.S. consumer spending and new-home sales increased. U.S. futures and Asian shares also advanced.

DSG International Plc, the U.K.’s biggest consumer- electronics retailer, added 1.8 percent after UBS AG added the stock to its list of “most preferred” shares. Maurel & Prom jumped 4.5 percent after saying a well in Gabon was successful. Antofagasta Plc advanced 1.2 percent as metals prices gained.

The Stoxx 600 rose 0.3 percent to 252 at 8:13 a.m. in London, the highest level since October 2008. Today is the last full day of trading in Europe before the Christmas holiday.

The gauge is heading for a 27 percent increase this year, its steepest annual advance in a decade. Equities have been buoyed by record-low interest rates in the U.S. and Europe and by governments worldwide that have committed about $12 trillion to revive the economy.

“We’re quite positive on equities,” Thomas Romig, a fund manager at Union Investment in Frankfurt, which has $229 billion in assets under management, said in a Bloomberg Television interview. “We see more surprises on economic growth. It will broaden in 2010. The market will be driven higher.”

Consumer spending in the U.S. probably rose in November for the sixth time in seven months as households took advantage of holiday discounting. Purchases gained 0.7 percent for a second consecutive month, according to the median estimate of 72 economists surveyed by Bloomberg News.

U.S., Asia

The report, set for 8:30 a.m. in Washington, may also show incomes grew by the most in six months. Other data will probably show confidence and new-home sales also climbed.

U.S. stocks rose yesterday, sending the Standard & Poor’s 500 Index above its highest close in almost 15 months. Futures on the S&P 500 added 0.3 percent today, while the MSCI Asia Pacific Index advanced 0.6 percent.

DSG gained 1.8 percent to 36.7 pence after UBS recommended the shares, saying in a report the company’s “interim results showed stronger momentum across the business.”

Maurel & Prom jumped 4.5 percent to 12.59 euros. The French company whose units explore for oil and operate cable-laying ships said its OMGW-1 exploration well in Gabon was successful.

Miners Advance

Antofagasta, the copper producer controlled by Chile’s Luksic family, added 1.2 percent to 919 pence. BHP Billiton Plc, the world’s biggest mining company, gained 0.7 percent to 1,917.5 pence. Rio Tinto Group, the third-largest, advanced 0.9 percent to 3,244. Copper, nickel and tin were among metals rising on the London Metal Exchange.

Allied Irish Banks Plc climbed 5.8 percent to 1.30 euros. Irish Finance Minister Brian Lenihan said restructuring plans submitted by Bank of Ireland Plc and Allied Irish Banks to the European Commission have received a “positive response,” the Irish Times reported.

The lenders will be able to determine their capital needs in the first quarter of 2010 after they transfer their biggest loans to the country’s so-called bad bank, the Dublin-based newspaper said.Bank of Ireland shares slipped 0.3 percent to 1.35 euros.

Inditex SA gained 0.9 percent to 43.61 euros. The world’s biggest clothing retailer was removed from the “least preferred” list at UBS as “there no longer seems any immediate threat of Spanish retail sales deteriorating further.”

Bank Sarasin & Cie AG advanced 1.8 percent to 37.75 Swiss francs. The bank will beat its new money growth target of 7 billion Swiss francs ($6.67 billion) in the full year and is “confident” to reach last year’s profit level, Finanz und Wirtschaft said, citing an interview with Chief Executive Officer Joachim Straehle.

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