European stocks fluctuated as a second day of declines in the price of oil offset concern about the levels of euro-region government debt. U.S. index futures and Asian shares were little changed.
European Aeronautic, Defence & Space Co. advanced 3.3 percent after the company returned to profit in 2010 and reinstated its dividend. Alcatel-Lucent SA dropped more than 4 percent after U.S. rival Finisar Corp. forecast earnings that missed estimates. E.ON AG (EOAN) declined 1.2 percent after the world’s largest utility by sales said net income will fall.
The Stoxx Europe 600 Index fell 0.1 percent to 281.42 at 9 a.m. in London. The gauge has lost 3.1 percent since peaking at a 2 1/2-year high on Feb. 17 as oil surged amid escalating unrest in North Africa and the Middle East, increasing concern that higher energy costs will harm the economic recovery.
“Any gains from the easing oil price are offset by the threat of euro-zone debt troubles and prospects of tighter monetary policy,” said Jonathan Sudaria, a London-based trader at London Capital Group.
Standard & Poor’s 500 Index futures slipped 0.2 percent today. The MSCI Asia Pacific Index gained 0.1 percent.
Crude fell as much as 0.8 percent to $104.21 a barrel in New York as speculation mounted that OPEC will consider boosting output to compensate for disruptions in Libya and U.S. crude inventories climbed.
OPEC Production
Angola’s oil minister said the Organization of Petroleum Exporting Countries should wait to see how events in Libya unfold before calling an emergency meeting about prices and production. Kuwait’s oil minister yesterday said members of the group are weighing an “urgent” meeting to determine whether more output is needed.
In Europe, Moritz Kraemer, managing director of European sovereign ratings at S&P, warned some countries may have their credit ratings cut further while a Greek debt default is a “possibility.”
Asked if the worst was over for the region’s sovereign credit-rating outlook, Kraemer said: “I wish I could say yes, but the answer is no.” Kraemer was speaking in an interview at a EuroMoney conference in London yesterday.
EADS rose 3.3 percent to 20.49 euros after reporting full- year net income of 553 million euros ($767 million) compared with a 763 million-euro loss a year earlier. The aerospace company also said profitability will rebound after this year as it smoothes out currency swings and jet deliveries gain.
Alcatel Falls
Alcatel, France’s largest telecommunications equipment maker, dropped 4.4 percent to 3.80 euros. Finisar, the Sunnyvale, California-based maker of fiber-optic transmission gear, yesterday forecast fourth-quarter earnings of 31 to 35 cents a share. That missed analyst estimates of 48 cents.
E.ON lost 1.2 percent to 22.85 euros after the German utility said adjusted net income will fall as much as 32 percent this year after the government imposed a new tax on its nuclear plants and it sells power at lower prices.
Prudential Plc (PRU) gained 3.4 percent to 738.5 pence after the U.K.’s biggest insurer by market value more than doubled full- year net income to 1.43 billion pounds ($2.31 million). Operating profit for the period rose 24 percent to 1.94 billion pounds, beating analyst estimates of 1.74 billion pounds.
Iberdrola Renovables SA (IBR) jumped 8.4 percent to 2.97 euros, the biggest gain since 2008, after parent company Iberdrola SA (IBE) bid 2.5 billion euros to buy out minority investors in its renewable energy unit. Iberdrola SA shares slipped 0.8 percent to 5.94 euros.
Tognum AG (TGM) climbed 4.1 percent to 24.16 euros as Daimler AG and Rolls-Royce Group Plc offered 24 euros a share to purchase the German maker of heavy-duty engines. Tognum surged 23 percent on March 7 after Daimler and Rolls-Royce said they were considering a joint bid for the company.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
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