BLBG:European Stocks Erase Advance on Confidence; Dollar Falls
European stocks erased their advance as euro-region economic confidence declined more than economists forecast. Italian bonds pared gains as the nation’s borrowing costs rose at a sale of six-month bills.
The Stoxx Europe 600 Index slipped less than 0.1 percent at 10:21 a.m. in London, having earlier climbed 0.6 percent. Standard & Poor’s 500 Index futures added 0.1 percent. The dollar weakened against all 16 major peers. The S&P GSCI gauge of commodities climbed 0.2 percent as live-cattle futures advanced for a second day after countries from Canada to Japan said they won’t halt U.S. beef imports following a case of mad- cow disease. Italy’s 10-year bond yield was little changed at 5.62 percent.
An index of executive and consumer sentiment in the 17- nation euro area fell to 92.8 from a revised 94.5 in March, the European Commission in Brussels said today. Exxon Mobil Corp., Starbucks Corp. (SBUX) and Amazon.com Inc. are among U.S. companies scheduled to report earnings today. Federal Reserve Chairman Ben S. Bernanke said yesterday he’s prepared to do more to stimulate growth if needed. South Korea’s economy grew at the fastest pace in a year, government data showed.
Three shares decline for every two that gained in the Stoxx 600. (SXXP) Volkswagen AG soared 6 percent and Unilever rallied 3.6 percent as results topped estimates. Rhoen Klinikum AG surged 49 percent after Fresenius SE offered to buy the German hospital operator for 3.1 billion euros ($4.1 billion).
U.S. Earnings
The gain in S&P 500 futures indicated the U.S. equities gauge will rise for a third day. Quarterly earnings-per-share have jumped 11 percent for the 192 companies in the index that reported since April 10, with results beating analysts’ forecasts by 9.6 percent, according to data compiled by Bloomberg. Before the start of the earnings season, analysts had predicted earnings growth of 0.8 percent.
U.S. reports today may show claims for jobless benefits declined for a second week and the number of people signing contracts to buy previously owned homes rose 1 percent in March, according to economists surveyed by Bloomberg.
To contact the reporter on this story: Andrew Rummer in London at arummer@bloomberg.net
To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net
