European stocks gained as the Stoxx Europe 600 Index rebounded from a five-week low. Asian shares fell, while U.S. index futures were little changed.
BHP Billiton Ltd. and Rio Tinto Group increased in London trading after the Australian government scaled back a proposed tax on mining companies. Dana Petroleum Plc jumped 17 percent after the Scottish oil explorer said it had received an approach from a potential acquirer. Genmab A/S surged 50 percent after a revised agreement with partner GlaxoSmithKline Plc reduced the risk of a new share sale.
The Stoxx 600 added 0.3 percent to 238.1 at 8:55 a.m. in London. The gauge has declined 12 percent from this year’s high on April 15, pushing its valuation to 11 times reported earnings, the lowest level since 2008, according to Bloomberg data. The index is heading for a weekly decline of 4.1 percent as concern deepens that the world economy is slowing.
Futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent before the Labor Department’s monthly payrolls report.
Employment in the U.S. fell by 130,000 in June because the government needed fewer census workers as its decennial population count began to wind down, according to the median estimate of 82 economists surveyed by Bloomberg News. The payrolls data, which follow this week’s disappointing reports on jobless benefit claims and company hiring, is due at 8:30 a.m. New York time.
China Growth Forecast
The MSCI Asia Pacific Index lost 0.3 percent as Goldman Sachs Group Inc. lowered its 2010 forecast for growth in China’s real gross domestic product to 10.1 percent from 11.4 percent.
BHP Billiton, the world’s biggest mining company, rose 1.9 percent to 1,726.5 pence in London trading, while Rio Tinto gained 1.3 percent at 2,943 pence. Australia exempted most commodities from a proposed mining tax, raised the threshold and cut the levy to 30 percent on coal and iron ore earnings, compared with a previous plan to collect 40 percent of all resource profits. The revamped tax will apply from July 1, 2012.
Dana Petroleum jumped 17 percent to 1376 pence. The company said it received a “very preliminary approach which may or may not lead to an offer.” Korea National Oil Corp. may make a $2.3 billion offer for the company, the FT reported, citing people familiar with the situation. A spokesman for Dana declined to identify the possible bidder.
Genmab soared 50 percent to 61.50 kroner after the Danish biotechnology company whose chief executive unexpectedly resigned last month amended its agreement with Glaxo on Arzerra. In exchange for lower milestone payments and royalties, Genmab will get an upfront payment of 90 million pounds ($136 million) and spend less to develop the antibody, which is being investigated to treat cancer and autoimmune diseases.
To contact the reporter on this story: Will Hadfield in London at whadfield@bloomberg.net
