BLBG: European Stocks Pare Advance as ECB Keeps Rates on Hold
European stocks pared their gains as the European Central Bank kept interest rates on hold. U.S. index futures were little changed, while Asian shares fell.
Aggreko Plc jumped the most in four years after the world’s largest provider of mobile power supplies reported increased profit and raised its dividend. Carrefour SA rose to a 19-month high after France’s biggest retailer posted a smaller-than- estimated decline in earnings. Aviva Plc plunged the most since 2009 after the U.K. insurer cut its dividend.
The Stoxx Europe 600 Index (SXXP) added less than 0.1 percent to 293.46 at 12:53 p.m. in London, having earlier climbed as much as 0.3 percent. The benchmark gauge rose to the highest level since June 2008 this week, boosted by optimism central banks around the world will continue stimulus measures. The measure has advanced 5 percent this year.
Standard & Poor’s 500 Index futures increased less than 0.1 percent after the Dow Jones Industrial Average closed at a record yesterday. The MSCI Asia Pacific Index lost 0.3 percent.
The U.S. economy, the world’s biggest, grew at a modest to moderate pace across most of the country amid rising consumer demand for homes and autos, the Fed said late yesterday in its Beige Book business survey.
“New highs in U.S. make everyone feel better,” Andy Lynch, a portfolio manager at Schroder Investment Management Ltd. in London, who helps manage about $1.6 billion, wrote in e- mailed comments. “Earnings haven’t been disastrous, so there’s no reason to sell.”
ECB Rates
The ECB kept its benchmark interest rate unchanged at a record low of 0.75 percent today, as predicted by most economists surveyed by Bloomberg.
The Bank of England left its four-year-old bond-purchase program unchanged today. The Monetary Policy Committee maintained its target for quantitative easing at 375 billion pounds ($562 billion). The decision was forecast by 29 of 39 economists in a Bloomberg survey, with the remainder having predicted an expansion of at least 25 billion pounds.
A Labor Department report at 8:30 a.m. in Washington may show 355,000 Americans filed applications for unemployment insurance last week, compared with 344,000 the prior period, according to the Bloomberg survey of economists. A release tomorrow may show U.S. employers added 163,000 jobs in February, while the unemployment rate held at 7.9 percent, according to separate surveys.
The volume of shares changing hands in Stoxx 600 companies was 2.6 percent less than the 30-day average, according to data compiled by Bloomberg.
Aggreko Advances
Aggreko surged 15 percent to 2,013 pence, the biggest gain since March 2009, as the company forecast “double digit” average revenue growth over the next five years.
Carrefour (CA) added 3.7 percent 22.19 euros, the highest since July 2011. Annual recurring operating income fell 2.6 percent to 2.14 billion euros ($2.78 billion), beating the 2.07 billion- euro average estimate in a Bloomberg survey of analysts.
Adidas AG rose 5 percent to 75.25 euros, the highest since the shares started trading in 1995. The world’s second-largest sporting-goods maker forecast higher sales and profit this year and raised its dividend by 35 percent as it targets fast-growing emerging markets and introduces new products.
Aviva plummeted 12 percent to 316.2 pence, the biggest drop since May 2009. The U.K.’s second-largest insurer by market value said it won’t pay bonuses to its executive directors or award pay rises for 2013 after cutting its second-half dividend by 44 percent. The company will pay a final dividend of 9 pence a share for 2012, down from 16 pence in the previous year.
‘Biggest Payers’
“Aviva (AV/) has historically been one of the biggest dividend payers and its decision to cut its dividend has had a big impact,” Batstone-Carr said.
National Express Group Plc (NEX) slid 11 percent to 205.1 pence, the biggest drop since October. The rail and bus operator’s largest investor, hedge fund Elliott Advisors, sold a 9.9 percent stake at 210 pence a share.
Davide Campari-Milano SpA slipped 1.4 percent to 5.96 euros. The maker of Skyy vodka reported an unexpected drop in annual profit amid declining sales in Italy and Brazil and said this year will also be “challenging.”
To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
