Talal Abu-Ghazaleh Capital Services (TAG Capital) | European Stock-Index Futures Advance; Deutsche Bank May Gain

European Stock-Index Futures Advance; Deutsche Bank May Gain

13 Oct 2008

Oct. 13 (Bloomberg) -- European stock-index futures climbed, indicating the Dow Jones Stocks 600 Index will rebound from its worst week on record, after the region's leaders agreed to support banks as part of a worldwide effort to halt the credit crisis. U.S. index futures and Asian stocks rallied. ING Grope NV, the biggest Dutch financial-services company, and Deutsche Bank AG will probably advance. BHP Billiton Ltd. gained in Australia as metals prices increased. The euro jumped the most in three weeks against the dollar, and oil rose from a 13-month low. Futures on the Euro Stocks 50 Index, a benchmark for the euro region, added 169, or 7.2 percent, to 2,534 at 7:05 a.m. in London. The U.K.'s FTSE 100 Index may increase 219, according to Cantor Index, a betting firm. Standard & Poor's 500 Index futures jumped 5 percent, while the MSCI Asia Pacific excluding Japan Index added 2.4 percent. European leaders agreed to guarantee new bank debt and keep distressed lenders afloat, while Australia guaranteed bank deposits. Dallas Federal Reserve President Richard W. Fisher yesterday pledged to ``consider every option'' to restore confidence and U.S. Treasury Secretary Henry Paulson said a day earlier that pumping government funds into banks is a priority. ``News of widespread government intervention on a worldwide basis to prop up ailing banks looks likely to give equity traders in London something to cheer,'' Matthew Buckland, a dealer at CMC Markets in London, wrote.$28 Trillion Europe's Stocks 600 has dropped 44 percent this year as about $28 trillion in value has been erased in value from global stock markets on concern that frozen credit markets will trigger a recession. Global financial firms have reported $635 billion in losses and write downs from U.S. mortgage-related investments since the beginning of last year.U.S. equity futures gained today after the worst week for stocks in 75 years and Asian shares rebounded from the worst week since at least 1987. In Europe, the key measures announced were: a pledge to guarantee until the end of 2009 bank debt issues with maturities up to five years; permission for governments to buy bank stakes; and a commitment to recapitalize what the statement called ``systemically'' critical banks in distress. American depositary receipts of ING added 10 percent from the stock's close in the Netherlands. Deutsche Bank, Germany's biggest, climbed 8.3 percent.