Stocks in Europe and Asia advanced, sending the MSCI World Index higher for the first time in four days, on speculation governments will expand efforts to revive the economy. U.S. index futures climbed. Barclays Plc, the U.K.’s third-biggest bank, and Credit Suisse Group AG increased more than 4 percent amid optimism that the White House will help mortgage borrowers. Australia & New Zealand Banking Group Ltd. jumped 9 percent in Sydney as the country’s senate passed a $28 billion stimulus package. ThyssenKrupp AG rallied 3.6 percent after Germany’s largest steelmaker posted earnings that beat analysts’ estimates. The MSCI World Index added 0.8 percent to 843.98 at 11:51 a.m. in London. The gauge of 23 developed markets has lost 2.9 percent this week as companies from Electricite de France SA to Diageo Plc posted disappointing results. “The market is starting to look a little farther ahead and anticipate a recovery, that the huge stimulus packages will bear fruit,” said Franz Wenzel, Paris-based deputy director for investment strategy at Axa Investment Managers, which oversees about $770 billion. Longer-term Treasuries fell today, trimming a weekly gain, on speculation the U.S. will use government cash to cut borrowing costs for homeowners, sapping demand for fixed-income assets. Futures on the Standard & Poor’s 500 Index added 0.4 percent after fluctuating between gains and losses. A private report may show confidence among U.S. consumers fell in February. The House of Representatives also votes today on the $789 billion stimulus plan President Barack Obama said he wants to sign by Feb. 16. Asia, Europe The MSCI Asia Pacific Index rose for the first time in five days, adding 0.9 percent. Europe’s Dow Jones Stoxx 600 Index gained 1.7 percent, led by Air France-KLM Group, Michelin & Cie. and Pernod Ricard SA, as all 19 industry groups advanced. The Stoxx 600 is still down 2.3 percent this week, poised for its first weekly loss since Jan. 23. Europe’s economy contracted 1.5 percent in the fourth quarter from the previous three months, the most in at least 13 years, compounding pressure on the European Central Bank to reduce interest rates next month. Profits have declined 65 percent for 574 companies in western Europe that have released earnings since Jan. 12, data compiled by Bloomberg show. “The one factor that investors are hanging onto is the government intervention,” Julien Quistrebert, who helps manage $5.2 billion at KBL Richelieu Gestion in Paris, said in a Bloomberg television interview. “It’s reassuring the market.” Obama, Geithner The Obama administration’s housing plan will use government money to help reduce interest rates for struggling borrowers, while asking lawmakers to approve more ways to modify mortgages, according to a person briefed on the proposal. Treasury Secretary Timothy Geithner intends to make the plan public in coming days, possibly within a week, said the person, who declined to be identified before the announcement. Barclays rose 4.5 percent to 109.7 pence. Credit Suisse, the second-biggest Swiss bank, climbed 5.4 percent to 33 francs. Australia & New Zealand Banking Group jumped 9 percent to A$12.96 in Sydney. Macquarie Group Ltd., Australia’s largest investment bank, added 2.9 percent to A$24.08. The country’s Senate approved in a second vote a A$42 billion ($28 billion) stimulus package aimed at ensuring the economy doesn’t enter its first recession in 18 years. ThyssenKrupp climbed 3.6 percent to 18.08 euros. The steelmaker said first-quarter profit slumped 59 percent to 168 million euros ($215.5 million) as demand dropped at the quickest pace since World War II and it wrote down the value of inventories. That beat the 135 million-euro median of seven analyst estimates compiled by Bloomberg. Sales fell 6.1 percent to 11.5 billion euros. Semiconductor Companies STMicroelectronics NV increased 6.1 percent to 4.43 euros. Europe’s biggest semiconductor maker was raised to “neutral” from “sell” at UBS AG. The bank lifted its recommendation on European semiconductor shares and technology hardware shares to “overweight,” saying valuations are attractive. Air France added 5.7 percent to 8.17 euros. Europe’s biggest airline kept its goal of having an operating profit this fiscal year even after reporting a third-quarter operating loss of 194 million euros. Air France also said it will reduce its workforce by 2,000 employees. Michelin rose 3.1 percent to 31.92 euros. The world’s second-largest tiremaker said it will focus on “improving its profitability and preserving its robust financial position” this year after 2008 profit fell 53 percent. Pernod jumped 7.1 percent to 49.35 euros. The world’s second-largest liquor company said first-half profit rose 15 percent on Asian demand. UBS analysts reiterated a “buy” recommendation after Pernod’s earnings statement, citing an improved outlook for the company’s profit margins and benefits from lower interest rates. New LSE CEO London Stock Exchange Group Plc gained 5.3 percent to 495 pence. The company named Xavier Rolet to succeed Clara Furse as chief executive officer, bringing an end to her eight-year reign at Europe’s oldest independent bourse. Under Furse, LSE’s first female CEO, the bourse fought off five takeover offers in two years and bought the operator of the Milan stock exchange in 2007. While LSE has remained independent, rivals including Euronext NV, Deutsche Boerse AG and Nasdaq OMX Group Inc. have forged alliances, adding to the range of products they offer and giving them greater size. LSE’s shares lost 74 percent last year on concern falling stock prices and competition from electronic exchanges will erode earnings. Kingfisher Upgrade Kingfisher Plc added 5.1 percent to 143.7 pence. Europe’s largest home-improvement retailer was raised to “buy” from “neutral” at UBS. “Although there is no evidence yet that demand is improving, the capacity situation in both the retail and trade markets, and a better outlook on costs, suggest B&Q profit forecasts may be on the turn,” the brokerage wrote in a note to clients. Saab AB, the Swedish maker of the Gripen fighter plane, plunged 15 percent to 68.75 kronor after reporting a fourth- quarter loss from writedowns and order delays and saying it may eliminate jobs to cut costs. The U.S. Reuters/University of Michigan preliminary index of consumer sentiment fell to 60.2 this month from 61.2 in January, according to the median forecast in a Bloomberg News survey. The drop would be the first in three months and would keep the index near a 28-year-low of 55.3 reached in November. Emerging Markets, China The MSCI Emerging Markets Index of 23 developing nations added 1.6 percent today, as China’s CSI 300 Index capped its fifth straight weekly advance, the longest streak since 2007. China’s economy, the world’s third-biggest, is showing signs that a 4 trillion yuan ($585 billion) stimulus package is taking effect. The economy may expand 6.6 percent in the second quarter after slowing to 6.3 percent in the three months to March 31, the weakest pace since 1999, according to the median estimates of 14 economists surveyed by Bloomberg News.

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