By Peter Levring - Mar 8, 2012 8:38 PM GMT+0700
European stocks climbed the most in a month as the deadline on Greece’s debt swap approached and Germany’s industrial output increased more than forecast. Asian shares and U.S. index futures also advanced.
European Aeronautic, Defence & Space Co. rallied to a five- year high after doubling its dividend and predicting earnings will climb. Aviva Plc added 2.7 percent as the U.K.’s second- biggest insurer by market value reported operating profit that exceeded estimates. Enel SpA (ENEL), Italy’s largest energy company, sank 5.4 percent after cutting its dividend.
Aviva Plc climbed 1.9 percent as the U.K.’s second-biggest insurer by market value reported operating profit that exceeded estimates. Photographer: Simon Dawson/Bloomberg
The Stoxx Europe 600 Index (SXXP) advanced 1.3 percent to 263.41 at 1:37 p.m. in London, the biggest increase since Feb. 3. The gauge has surged 7.7 percent this year as the European Central Bank lent more than 1 trillion euros ($1.3 trillion) for three years to the region’s banks to ease liquidity.
“Investors will be able to draw a line under Greece that has been going on for too long,” said Mike Lenhoff, chief strategist at Brewing Dolphin Securities Ltd. in London. “In the U.S., economic news flow has been very encouraging. The overall trend of employment has been positive.”
Standard & Poor’s 500 Index futures added 0.8 percent today. The MSCI Asia Pacific Index (MXAP) advanced 1.3 percent as Japan’s economy contracted less than initially estimated last quarter.
Greek Debt
Investors with about 60 percent of the Greek bonds eligible for the nation’s debt swap have so far indicated they’ll participate, putting the country on the verge of the biggest sovereign restructuring in history. The offer, which ends at 10 p.m. Athens time today, aims to reduce the 206 billion euros of privately held Greek debt by 53.5 percent.
In Germany, industrial output increased more than economists forecast in January as construction activity jumped. Production rose 1.6 percent from December, when it fell 2.6 percent, the Economy Ministry in Berlin said today. Economists forecast a January increase of 1.1 percent, according to the median of 39 estimates in a Bloomberg News survey.
Stocks pared their gains as a U.S. report showed the number of Americans filing claims for jobless benefits rose to 362,000 last week. Applications for unemployment insurance payments increased by 8,000 in the week ended March 3, Labor Department figures showed today. The average over the past four weeks held close to a four-year low.
EADS rallied 8.6 percent to 29.15 euros, the highest price since May 2006. The maker of Airbus passenger jets agreed to pay a dividend of 45 cents a share, more than doubling the payout from last year and exceeding analyst estimates for a 30-cent dividend. Earnings before interest, taxes and one-time items will increase to more than 2.5 billion euros in 2012, from 1.8 billion euros last year, EADS said.
Aviva Advances
Aviva (AV/) rose 2.5 percent to 359.90 pence. The insurer reported operating profit that fell 2 percent to 2.5 billion pounds, surpassing the 2.45 billion-pound median estimate of analysts in a Bloomberg survey.
Bayerische Motoren Werke AG gained 1.6 percent to 69.34 euros after the world’s largest maker of luxury vehicles reported record profit in 2011 of 8.02 billion euros buoyed by demand for the X3 sport-utility vehicle.
Profit compared with an 8.04 billion-euro average estimate of 20 analysts surveyed by Bloomberg. Revenue climbed 14 percent to 68.8 billion euros.
Gemalto NV (GTO) jumped 4.2 percent to 45.02 euros as the inventor of the smart chip used in bank and phone cards forecast revenue and operating profit will increase this year.
Klepierre Gains
Klepierre SA (LI) climbed 5.1 percent to 24.58 euros. Simon Property Group Inc., the biggest U.S. mall owner, agreed to pay BNP Paribas SA 28 euros a share for a 28.7 percent stake in France’s second-largest publicly traded owner of shopping centers, in a deal worth about 1.52 billion euros. BNP shares jumped 4 percent to 37.09 euros.
Deutsche Post AG (DPW) advanced 5.8 percent to 13.67 euros. Europe’s largest postal service said profit in 2012 will rise as much as 6.6 percent as growth in global trade helps the company’s DHL express and freight business.
Enel retreated 5.4 percent to 2.87 euros after the utility cut its dividend payout by a third to 40 percent of ordinary net income as it seeks to raise funds to cut debt.
Annual net income fell to 4.15 billion euros from 4.4 billion euros a year earlier, hurt by a windfall-profit tax imposed in Italy, the company said. That missed the 4.3 billion- euro average estimate of 17 analysts surveyed by Bloomberg.
Wirecard AG (WDI) retreated 2.2 percent to 14.09 euros after the German provider of software and systems for online payments raised 139.5 million euros selling shares at 13.70 euros apiece.
To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
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