European stocks climbed, rebounding from a three-month low, as European Union leaders vowed to support Greece if the nation passes further austerity measures. U.S. index futures and Asian shares advanced.
The benchmark Stoxx Europe 600 Index jumped 1 percent to 266.85 at 8:18 a.m. in London, leaving the gauge little changed this week. The measure has still tumbled 8.4percent from this year’s high in February as U.S. economic data trailed forecasts and concern mounted that Greece may default on its debt.
Standard & Poor’s 500 Index futures climbed 0.3 percent today after the U.S. gauge pared a drop of as much as 1.9 percent in late trading yesterday. The MSCI Asia Pacific Index gained 1.1 percent.
EU officials vowed at a summit in Brussels yesterday to stave off a default in Greece as long as the country’s Prime Minister George Papandreou pushes through a package of budget cuts next week. Greek lawmakers are due to vote on 78 billion euros ($111 billion) of austerity measures on June 30.
‘Green Light’
“This is not only a green light but also a positive sign for the future of Greece,” Papandreou told reporters.
In the U.S., a report today might show orders for durable goods climbed 1.5 percent in May after slumping the prior month, according to the median of 69 economists’ estimates in a Bloomberg News survey. Another release may confirm that the U.S. economy cooled in the first quarter.
BBVA, Spain’s second-biggest bank, rose 2.5 percent to 7.75 euros and UniCredit, Italy’s largest, advanced 1.6 percent to 1.47 euros. A gauge of lenders sank 2.7 percent yesterday, the biggest drop since Feb. 21.
Vedanta, which was yesterday downgraded to “underperform” at BofA Merrill Lynch Global Research, increased 2.4 percent to 1,876 pence and Repsol, Spain’s biggest oil company, added 1.7 percent to 22.68 euros after the shares lost at least 2 percent yesterday.
Commodities rebounded today, led by gains in crude oil and copper, as investors maintained their bullish outlook for demand. The S&P GSCI Index of 24 commodities rallied as much as 1.1 percent, paring yesterday’s 3.6 percent slump.
Chinese Inflation
Premier Wen Jiabao said in an opinion piece in the Financial Times that China’s efforts to stem inflation have worked and that the pace of consumer-price increases will slow.
Berkeley Group surged 7.2 percent to 1,212 pence, the highest level since January 2008, after saying net income increased 19 percent to 95.1 million pounds ($152 million) in the 12 months through April.
Cap Gemini SA (CAP), Europe’s largest computer-services company, climbed 3.1 percent to 38.48 euros after Accenture Plc, the world’s second-biggest technology-consulting company, raised its full-year revenue and earnings forecasts.
Source: www.bloomberg.com
Ravi Jhawar
Summer Intern-Technical Analyst
DENIP Consultants Pvt. Ltd.
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