Europe Stocks Pare Losses as Spain Sells Debt; Retail, Mining Shares Gain

By Peter Levring - Dec 1, 2011 5:10 PM GMT+0700

European stocks erased their losses after debt sales by France and Spain, as shares of commodity companies, carmakers and retailers advanced. U.S. index futures retreated, while Asian shares climbed.

The Stoxx 600 gained 0.2 percent to 240.45 at 10:06 a.m. in London. The December contract on the Standard & Poor’s 500 Index (SPX) slid 0.2 percent. The MSCI Asia Pacific Index jumped 3.1 percent.

European stocks yesterday rose 3.6 percent to post their biggest four-day rally since November 2008 as the Federal Reserve and five other central banks lowered the cost of dollar funding and China cut its reserve rates for banks.

Spanish bonds gained and the euro strengthened after the government sold the maximum amount of debt planned at an auction. France sold 4.346 billion euros of securities, compared with a maximum 4.5 billion euros of debt available on offer.

In the U.S., a report today may show manufacturing grew in November at the fastest pace in five months, showing factories will keep supporting the economic expansion through the end of the year, economists said.

The Institute for Supply Management’s factory index rose to 51.8 last month from 50.8 in October, economists surveyed by Bloomberg News forecast. Fifty is the dividing line between growth and contraction. Jobless claims fell last week and construction spending increased in October, other data may show.

To contact the reporter on this story: Peter Levring in Copenhagen at Plevring1@bloomberg.net or

To contact the editor responsible for this story: Andrew Rummer in London at arummer@bloomberg.net;