European Stocks Rise Led by Julius Baer; Japanese Shares Fall
European Stocks Rise, Led by Julius Baer; Japanese Shares Fall
By Andreas Hippin
Feb. 8 (Bloomberg) — European stocks advanced after Julius
Baer Group reported earnings that beat analysts; estimates and
MBIA Inc., the world;s biggest bond insurer, shored up capital.
Julius Baer rallied more than 3 percent in Zurich, while
Allianz SE, Barclays Plc and Deutsche Bank AG gained the most in
at least a week. Rising oil and metal prices sent commodity
producers BP Plc and BHP Billiton Ltd. higher in London. Auto
stocks, the region;s worst-performing shares this year, rebounded
as Morgan Stanley upgraded the industry.
Japanese stocks dropped, led by Komatsu Ltd., after the
nation;s machinery orders fell more than forecast, while U.S.
index futures were little changed.
Europe;s Dow Jones Stoxx 600 Index added 1.3 percent to
318.15 at 9:30 a.m. in London, trimming this week;s drop to 3.1
percent. Futures on the Standard %26amp; Poor;s 500 Index increased
less than 0.1 percent, while the Nikkei 225 Stock Average lost
1.4 percent in Tokyo.
“The market is taking a breather after the losses,;; said
Carsten Klude, who helps manage $20 billion as head of investment
strategies at M.M. Warburg %26amp; Co. in Hamburg. “There is some
relief after MBIA;s capital increase. It;s good news for banks.;;
Stocks rose yesterday in the U.S. for the first time this
week as an improved outlook for earnings at retailers and banks
overshadowed a bigger-than-forecast drop in home sales.
National benchmarks increased in all 17 western European
markets that were open today except Norway. France;s CAC 40 added
1.2 percent, as did the U.K.;s FTSE 100, while Germany;s DAX
gained 1.5 percent.
The Stoxx 50 and the Euro Stoxx 50, a measure for the
nations sharing the euro, both climbed 1.2 percent.
Julius Baer, Allianz
Julius Baer advanced 3.3 percent to 74.5 Swiss francs. The bank
said profit increased 31 percent to 1.14 billion francs ($1.03
billion) last year after it boosted client assets. Today;s results
beat the 1.03 billion-franc median estimate of nine analysts
surveyed by Bloomberg. Client assets under management rose to 405
billion francs, from 361 billion francs a year earlier.
Allianz, Europe;s biggest insurer, rose 1.6 percent to
117.08 euros. Barclays, Britain;s third-largest bank, climbed 2
percent to 454 pence. Deutsche Bank, Germany;s biggest bank, rose
1.9 percent to 76.69 euros.
“We;ll see a relief rally driven by banks and insurers,;;
said Stefan de Schutter, an analyst at alpha Wertpapierhandel in
Frankfurt. “MBIA;s share sale certainly helps investors relax.;;
MBIA said yesterday that it sold $1 billion in stock at
below-market prices to lure buyers and shore up capital to
maintain its AAA insurance rating.
Oil, Mining Stocks
BP, Europe;s second-largest oil company, climbed 2 percent
to 546.5 pence. Total, the third-biggest, jumped 1.1 percent to
48.25 euros.
Oil rose for a second day on speculation the passage of an
economic stimulus plan in the U.S. may boost demand in the
world;s largest energy consumer. Crude for March delivery climbed
as much as 77 cents, or 0.9 percent, to $88.88 a barrel in after-
hours electronic trading on the New York Mercantile Exchange.
Yesterday the contract jumped 1.1 percent.
BHP Billiton, the world;s largest mining company, added 2
percent to 1,498 pence. Rio Tinto, the third-biggest, advanced
1.7 percent to 5,310 pence.
Copper for delivery in three months on the London exchange
gained 1.6 percent to $7,660 a metric ton, climbing 7.4 percent
in three days.
Anglo American Plc rallied 3.1 percent to 2,970 pence after
De Beers said sales this year will probably rise because of
higher diamond prices with a shortage of uncut diamonds expected
to persist. Anglo American owns 45 percent of the world;s biggest
diamond company.
Porsche SE, Renault SA and PSA Peugeot Citroen led gains by
carmakers after Morgan Stanley raised its recommendation on the
industry to “in-line;; from “cautious.;;
Porsche, the maker of the 911 sports car, increased 1.5
percent to 1,105.04 euros. Renault, France;s second-largest
carmaker, advanced 1.7 percent to 69.6 euros. Peugeot, Europe;s
second-largest carmaker, added 0.9 percent to 47.48 euros.
The Stoxx Automobiles %26amp; Parts Index has lost 19 percent this
year, compared with a 13 percent retreat for the Stoxx 600.
Biffa Plc jumped 11 percent to 365.5 pence. Montagu Private
Equity LLP and Global Infrastructure Partners agreed to buy the
U.K. landfill operator and trash collector for 1.2 billion pounds
($2.3 billion).
BG Group Plc advanced 3.2 percent to 1,154 pence. UBS AG
upgraded Britain;s third-largest natural-gas producer to “buy;;
from “neutral.;;
To contact the reporter on this story:
Andreas Hippin in Frankfurt at
