European stocks climbed for a third straight day as policy makers increased efforts to contain the region’s sovereign-debt crisis. Asian shares and U.S. index futures advanced.
BNP Paribas (BNP) SA and Credit Agricole SA (ACA) led a rally in banks. MAN SE (MAN) soared 5.7 percent as European Union regulators cleared Volkswagen AG (VOW)’s takeover of the truckmaker. Novartis AG (NOVN), Europe’s second-biggest drugmaker by sales, gained 1.4 percent after its Seebri drug showed positive results in two studies.
The benchmark Stoxx Europe 600 Index climbed 2.1 percent to 224.9 at 8:05 a.m. in London. The gauge has surged 4.6 percent over the past three trading days after falling to a two-year low on Sept. 22.
Traders are “suddenly becoming increasingly confident that European leaders can now reach an agreement to successfully contain the debt crisis,” said Chris Weston, an institutional trader at IG Markets in Melbourne. “Investors must hold their nerve and at the same time central banks and finance ministers need to remain ‘on message’ as any suggestions that the rescue plans may go away will likely be enough to see markets take fright once again.”
The Stoxx 600 fell 26 percent from this year’s peak in February through Sept. 22 as European and U.S. economic reports trailed forecasts, adding to concern that the global recovery is at risk. The decline left the measure trading at 9 times estimated earnings, the cheapest since March 2009, data compiled by Bloomberg show.
Asian, U.S. Shares
The MSCI Asia Pacific Index rallied 3.7 percent today, while Standard & Poor’s 500 Index futures increased 0.4 percent.
U.S. Treasury Secretary Timothy F. Geithner predicted that European governments will step up their response to their region’s debt crisis after a chiding from counterparts around the world.
“They heard from everybody around the world” in Washington meetings last week, Geithner said on ABC’s “World News With Diane Sawyer” program. Europe’s crisis is “starting to hurt growth everywhere, in countries as far away as China, Brazil and India, Korea. And they heard the same message from us they heard from everybody else, which is it’s time to move.”
Geithner’s remarks maintain pressure on Europe ahead of finance minister and central bank gatherings next week and a decision on whether to disburse a loan Greece may need to avoid default.
German, Greek Talks
German Chancellor Angela Merkel hosts Greek Prime Minister George Papandreou for talks in Berlin today as credit-default swaps show a more than 90 percent chance that Greece won’t meet its debt commitments. By contrast, German swaps signal a less than 10 percent chance that Europe’s biggest economy will fail to adhere to its obligations. Papandreou tests the strength of his parliamentary majority today as lawmakers vote on a property tax that is key to persuading the EU and International Monetary Fund to release an aid installment and avert default.
In the U.S., a report at 9 a.m. Washington time may show home prices declined in July from a year earlier. The S&P/Case- Shiller index of property values in 20 cities fell 4.4 percent from July 2010, the 10th consecutive year-to-year drop, according to the median forecast of 27 economists surveyed by Bloomberg News. Another report may show consumer confidence held in September near a two-year low.
BNP Paribas (BNP) SA and Credit Agricole SA (ACA) led a rally in banks. MAN SE (MAN) soared 5.7 percent as European Union regulators cleared Volkswagen AG (VOW)’s takeover of the truckmaker. Novartis AG (NOVN), Europe’s second-biggest drugmaker by sales, gained 1.4 percent after its Seebri drug showed positive results in two studies.
The benchmark Stoxx Europe 600 Index climbed 2.1 percent to 224.9 at 8:05 a.m. in London. The gauge has surged 4.6 percent over the past three trading days after falling to a two-year low on Sept. 22.
Traders are “suddenly becoming increasingly confident that European leaders can now reach an agreement to successfully contain the debt crisis,” said Chris Weston, an institutional trader at IG Markets in Melbourne. “Investors must hold their nerve and at the same time central banks and finance ministers need to remain ‘on message’ as any suggestions that the rescue plans may go away will likely be enough to see markets take fright once again.”
The Stoxx 600 fell 26 percent from this year’s peak in February through Sept. 22 as European and U.S. economic reports trailed forecasts, adding to concern that the global recovery is at risk. The decline left the measure trading at 9 times estimated earnings, the cheapest since March 2009, data compiled by Bloomberg show.
Asian, U.S. Shares
The MSCI Asia Pacific Index rallied 3.7 percent today, while Standard & Poor’s 500 Index futures increased 0.4 percent.
U.S. Treasury Secretary Timothy F. Geithner predicted that European governments will step up their response to their region’s debt crisis after a chiding from counterparts around the world.
“They heard from everybody around the world” in Washington meetings last week, Geithner said on ABC’s “World News With Diane Sawyer” program. Europe’s crisis is “starting to hurt growth everywhere, in countries as far away as China, Brazil and India, Korea. And they heard the same message from us they heard from everybody else, which is it’s time to move.”
Geithner’s remarks maintain pressure on Europe ahead of finance minister and central bank gatherings next week and a decision on whether to disburse a loan Greece may need to avoid default.
German, Greek Talks
German Chancellor Angela Merkel hosts Greek Prime Minister George Papandreou for talks in Berlin today as credit-default swaps show a more than 90 percent chance that Greece won’t meet its debt commitments. By contrast, German swaps signal a less than 10 percent chance that Europe’s biggest economy will fail to adhere to its obligations. Papandreou tests the strength of his parliamentary majority today as lawmakers vote on a property tax that is key to persuading the EU and International Monetary Fund to release an aid installment and avert default.
In the U.S., a report at 9 a.m. Washington time may show home prices declined in July from a year earlier. The S&P/Case- Shiller index of property values in 20 cities fell 4.4 percent from July 2010, the 10th consecutive year-to-year drop, according to the median forecast of 27 economists surveyed by Bloomberg News. Another report may show consumer confidence held in September near a two-year low.
