European stocks rose, with the Stoxx Europe 600 Index extending its biggest rally in three months, amid speculation the European Central Bank will act to stem the region’s debt crisis. Asian equities and U.S. futures advanced. BHP Billiton Ltd., the world’s largest mining company, led commodity companies higher. Bayerische Motoren Werke AG led gains among carmakers after U.S. sales last month surged 30 percent from a year earlier. Britvic Plc, the maker of Robinson’s fruit drinks, led falling shares on the Stoxx 600 after reporting its first full-year loss in at least 7 years. The Stoxx 600 gained 0.3 percent to 267.82 as of 11:23 a.m. in London. The gauge jumped 2 percent yesterday, the most since Sept. 1, amid speculation ECB policy makers may step up measures to contain the government-debt crisis and after a report showed China’s manufacturing activity grew at the fastest pace in seven months in November. “Amidst the bullishness, euro-zone debt worries still linger,” said Jonathan Sudaria, a trader at London Capital Group. “Traders got a hint yesterday from Jean-Claude Trichet that some form of aggressive policy to soothe debt worries was in the wings. Traders will be keenly watching the ECB press conference today for any further clarification, but if he fails to deliver, things could turn quite sharply.” Futures contracts on the Standard & Poor’s 500 Index expiring this month rallied 0.3 percent, while the MSCI Asia- Pacific Index climbed 1.5 percent. ECB The ECB is forecast to keep interest rates unchanged today, delaying its exit from emergency liquidity measures as the debt crisis threatens to engulf Spain, its fourth-largest economy, and Portugal. ECB policy makers will announce their decision at 1:45 p.m. in Frankfurt and Trichet holds a press conference 45 minutes later. Japanese companies boosted spending for the first time in three years and the U.S. Labor Department may say tomorrow U.S. payrolls expanded for a second month, after reports yesterday indicated job growth and manufacturing expanded in the world’s largest economy. Trends in European stocks during 2010 are likely to repeat themselves next year, and investors should favor shares in countries like Germany and bet against nations in the “periphery,” Goldman Sachs Group Inc. strategists led by Peter Oppenheimer wrote in a report. Investors should also pick stocks with sales in the largest emerging economies, which will outpace growth in the euro zone, and businesses with “high operating leverage” amid “strong global economic growth,” the report said. U.S. Data In the U.S., fewer Americans signed contracts to buy previously owned homes in October for a second month, adding to evidence a recovery in housing will take time to develop, economists said before a report today at 10:00 a.m. in Washington. At 8:30 a.m. the Labor Department may report applications for unemployment benefits rose to 424,000 last week, according to the Bloomberg survey median. Claims fell to 407,000 in the prior week, the lowest level since July 2008. The Fed’s report on regional activity, known as the Beige Book, said yesterday that the economy gained strength across much of the U.S. as hiring improved, manufacturing expanded and retailers anticipated a stronger holiday shopping season. The anecdotal information will help policy makers frame the discussion of the economy when they next meet on Dec. 14. BHP Billiton, Rio Tinto BHP Billiton advanced 1.4 percent to 2,395.5 pence in London. Rio Tinto Group, the world’s third-biggest mining company, climbed 2.3 percent to 4,304.5 pence. BMW gained 1.3 percent to 61.68 euros. Its namesake brand was the top-selling luxury auto marque in the U.S. in November, overtaking Daimler AG’s Mercedes-Benz in year-to-date deliveries. U.S. deliveries of Wolfsburg, Germany-based Volkswagen AG’s Audi brand climbed 38 percent to 9,365 vehicles. Volkswagen preferred shares advanced 2.4 percent to 130.90 euros. Britvic slumped 7.1 percent to 456 pence. The company posted a net loss of 48.2 million pounds ($75.3 million) in the 53 weeks ended Oct. 3, compared with a profit of 46.8 million pounds for the 52 weeks ended Sept. 27, 2009. TNT NV rallied 5.2 percent to 19.82 euros as Europe’s second-biggest express-delivery company said it will spin off its express-delivery business to focus on regular mail delivery. Rexel SA, the Paris-listed electrical equipment distributor, rose 3.8 percent to 15.72 euros after saying it expects 2010 sales to be close to 11.9 billion euros ($15.63 billion) and the acquisition of Grossauer will add to earnings from the first year. Petrofac, Desire Petrofac Ltd. gained 2.3 percent to 1,483 pence after the the oilfield services and engineering provider was upgraded to “buy” from “neutral” at Goldman Sachs. Desire Petroleum Plc soared 24 percent to 131 pence as the U.K. explorer focused on the Falkland Islands said its Rachel North well discovered oil. Georg Fischer AG rallied 6.8 percent to 534 Swiss francs as UBS AG raised its price estimate on the shares 25 percent to 710 francs, citing a successful restructuring plan and growing demand in Asia. Wendel SA advanced 4.8 percent to 65.14 euros as the publicly traded private equity company said its net asset value stood at 85.7 euros on Nov. 23, up 64.2 percent from a year ago and up 35.6 percent since Aug. 25. To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net. To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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