18 Nov 2009
Nov. 18 (Bloomberg) -- European stock-index futures rose as Royal Ahold NV reported earnings that beat analysts' estimates and investors speculated data today may show U.S. housing starts increased in October.Ahold, owner of the U.S. Stop & Shop grocery chain, may gain after saying it will cut 350 million euros ($521 million) in expenses. Fiat SpA will probably move as Banca IMI SpA advised investors to buy the shares. Electricite de France SA might be active after a newspaper report that it may seek to control Areva SA's nuclear reactor unit.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark measure for the euro region, added 0.7 percent at 7:012 a.m. in London. The U.K.'s FTSE 100 Index may decrease 2, according to Cantor Index, a betting firm.
Europe's Stoxx 600 has climbed 58 percent since March 9 amid signs government spending and record-low interest rates are helping to drag the economy out of recession. The eight-month rally has pushed valuations in the index to more than 55 times its companies reported earnings, near the most expensive level since 2003.
U.S. stocks rose yesterday, with benchmark indexes extending their 13-month highs, as a rebound in metal prices overshadowed a smaller-than-forecast increase in industrial production. Standard & Poor's 500 Index futures rose 0.1 percent today, as did the MSCI Asia Pacific Index.
Housing Starts
Builders in October probably broke ground on U.S. houses at the fastest pace in 11 months, and consumer prices held below the Federal Reserve's long-range goal, economists said reports today may show.
Housing starts rose 1.7 percent to an annual rate of 600,000, the most since November 2008, according to the median forecast of 77 economists in a Bloomberg News survey. A report from the Labor Department may show the cost of living climbed 0.2 percent for a second month.
Ahold said third-quarter net income rose to 238 million euros from 195 million euros in the year-earlier period. That compared with an average estimate of 179 million euros in a Bloomberg survey of eight analysts.
Fiat might gain. Banca IMI analyst Monica Bosio upgraded the Italian carmaker to "buy" from "hold" with a share-price estimate of 14.40 euros.
EDF may seek to control Areva's nuclear reactor unit, formerly known as Framatome, French daily Les Echos reported. Henri Proglio, who takes over as EDF's chief executive officer next week, told the newspaper that Framatome, now called Areva NP, should be supported by strong industrial actors.
Allianz SE may fall as Morgan Stanley downgraded Germany's biggest insurer to "equal-weight" from "overweight." Burberry Group Plc, the U.K.'s largest luxury-goods company, was cut to "neutral" from "buy" at Nomura Holdings Inc.
