“European stocks rose fore the first time in four days as German economic sentiment improved more than forecast and Danone SA rallied after reporting earnings. U.S. index futures and Asian shares increased.
Danone, the world’s largest yogurt maker, surged the most since May 2010 after also announcing job cuts. Drax Group Plc climbed to a four-year high as the operator of Britain’s biggest coal-fired power station reported profit that topped projections. Bayer AG added 3.4 percent after beginning a new drug trial. Vodafone Group Plc sank to a three-week low as Sanford C. Bernstein & Co. downgraded the shares.
The Stoxx Europe 600 Index advanced 0.9 percent to 289.31 at 12:30 p.m. in London, erasing a 0.5 percent loss over the previous three days. The benchmark gauge has gained 3.5 percent this year as U.S. lawmakers agreed on a compromise federal budget. The index is trading at 12.4 times estimated earnings, up from a multiple of 9 in September 2011, according to data compiled by Bloomberg.
Danone “was a mainly positive report,” said Espen Furnes, who helps oversee $75 billion as fund manager at Storebrand Asset Management in Oslo. “We expect the European economy to pick up somewhat during 2013 which, combined with decent growth from other regions, means there still is material upside in European stocks in the longer term.”
Standard & Poor’s 500 Index futures expiring next month added 0.2 percent today, with U.S. markets set to reopen after the Presidents’ Day holiday. The MSCI Asia Pacific Index also gained 0.2 percent.
German Confidence
German investor confidence increased to the highest level in almost three years in February. The index of investor and analyst expectations climbed to 48.2 from 31.5 in January, the ZEW Center for European Economic Research said. That exceeded the median estimate of economists in a Bloomberg survey calling for an increase to 35…..”
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