European stocks advanced after minutes from the Federal Reserve showed policy makers are prepared to buy more government debt and Intel Corp. and JPMorgan Chase & Co. reported earnings that topped estimates.
ASML Holding NV led semiconductor stocks higher, climbing 4.2 percent, as the company posted better-than-estimated profit and Intel, the world’s largest chipmaker, forecast sales that exceeded analysts’ projections. Transocean Ltd. led gains by oil-exploration stocks after the U.S. lifted its ban on deep- water drilling. Standard Chartered Plc limited the advance after announcing a 3.3 billion-pound ($5.2 billion) share sale.
The benchmark Stoxx Europe 600 Index added 1.3 percent to 265.84 at 2:30 p.m. in London, rebounding from yesterday’s 0.3 percent slide. The gauge last week jumped 1.2 percent amid speculation that the Fed will announce plans to stimulate economic growth at its Nov. 2-3 meeting.
“Clearly the U.S. economy with high levels of debt needs as much quantitative easing as is necessary to get the economy growing again,” Andreas Utermann, chief investment officer at RCM unit of Allianz Global Investors, which manages about $1.3 trillion, said in a Bloomberg Television interview. “We anticipate more quantitative easing to come,” he said.
Quantitative Easing
The Fed yesterday published minutes from its Sept. 21 meeting that showed that it will be ready “before long” to increase purchases of Treasuries. The U.S. central bank also discussed boosting inflation expectations as a way to prop up the economy.
National European benchmark indexes advanced in all 18 western markets today, except Luxembourg. The U.K.’s FTSE 100 gained 1.3 percent while Germany’s DAX and France’s CAC 40 both increased 1.7 percent.
ASML rallied 4.2 percent to 23.02 euros after Europe’s biggest semiconductor equipment maker said third-quarter profit rose to 268.5 million euros ($375 million), beating the 247 million-euro average of 21 analysts’ estimates compiled by Bloomberg. The company also reiterated that 2010 sales will reach a record.
STMicroelectronics NV, Europe’s largest chipmaker, rose 3.6 percent to 5.73 euros and Infineon Technologies AG, the region’s second-biggest, climbed 4.8 percent to 5.61 euros.
Larger U.S. rival Intel said it will generate $11.4 billion of fourth-quarter sales, plus or minus $400 million, beating an average estimate of $11.3 billion, according to data compiled by Bloomberg. The company cited strong demand from businesses and customers in emerging economies.
‘Fairly Bullish’
“We’ve been fairly bullish on the tech sector now for some time,” RCM’s Utermann said on Bloomberg Television’s On the Move with Francine Lacqua. “We thought it was going to be one of those sectors that would benefit most from any type of recovery. There is a lot of capital spending going on.”
JPMorgan also reported earnings today. The second-biggest U.S. bank said profit increased 23 percent as provisions for losses on mortgages, credit cards and other consumer loans fell $5.8 billion.
Standard Chartered fell 2.7 percent to 1,857.5 pence after the bank announced plans to sell shares at 1,280 pence for every eight that investors already own. That’s 33 percent less than yesterday’s closing price. Temasek Holdings Pte, which owns a 17.7 percent stake, will subscribe to its portion of the sale.
Drilling Ban Lifted
Transocean jumped 4.4 percent to 63.65 Swiss francs as the U.S. government lifted the ban on deep-water drilling that was introduced following the explosion at BP Plc’s Macondo well off the Louisiana coast which led to the world’s largest accidental oil spill.
Yesterday, Interior Secretary Ken Salazar ended the ban, which was scheduled to expire on Nov. 30, and said that oil companies must meet new safety requirements. Transocean owned the Deepwater Horizon oil rig that was destroyed when the well blew out.
CGGVeritas, the world’s largest seismic surveyor for oil and gas, rallied 7.7 percent to 17.85 euros. Petroleum Geo- Services ASA soared 5.8 percent to 73.5 kroner and TGS Nopec Geophysical Co. surged 12 percent to 99.25 kroner for the biggest gain in the Stoxx 600.
Rockhopper Exploration Plc plunged 17 percent to 383.75 pence after its advisers said resources may be lower than expected. The explorer, which is searching for oil and gas off the Falkland Islands, said it plans to hire a rig to drill more wells after consultants said that resources may be 30 percent less than estimated.
Aixtron, Fresnillo
Aixtron AG, a German maker of equipment used to produce light-emitting diode screens, jumped 8.2 percent to 22.33 euros. General Electric Co.’s lighting division may draw as much as 75 percent of sales from LED products within the next decade, compared with less than 10 percent now, the unit’s chief said.
Fresnillo Plc rose 2.5 percent to 1,272 pence after the world’s largest primary silver producer said its output increased to a record in the third quarter. The company also expects to “slightly beat” its full-year output forecasts for gold and silver.
Shares of Man Group Plc gained 2.9 percent to 264.3 pence after the hedge-fund manager said the weekly net asset value of Man AHL Diversified Futures Ltd. fund was $40.56 at the close of business on Oct. 11. That’s up 4.5 percent compared with the previous week’s close.
Burberry Group Plc dropped 2.6 percent to 1,012 pence after the U.K.’s largest luxury retailer said annual profit will be in the “top half” of analysts’ estimates, disappointing investors who had expected upgrades after second-quarter sales beat forecasts.
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ASML Holding NV led semiconductor stocks higher, climbing 4.2 percent, as the company posted better-than-estimated profit and Intel, the world’s largest chipmaker, forecast sales that exceeded analysts’ projections. Transocean Ltd. led gains by oil-exploration stocks after the U.S. lifted its ban on deep- water drilling. Standard Chartered Plc limited the advance after announcing a 3.3 billion-pound ($5.2 billion) share sale.
The benchmark Stoxx Europe 600 Index added 1.3 percent to 265.84 at 2:30 p.m. in London, rebounding from yesterday’s 0.3 percent slide. The gauge last week jumped 1.2 percent amid speculation that the Fed will announce plans to stimulate economic growth at its Nov. 2-3 meeting.
“Clearly the U.S. economy with high levels of debt needs as much quantitative easing as is necessary to get the economy growing again,” Andreas Utermann, chief investment officer at RCM unit of Allianz Global Investors, which manages about $1.3 trillion, said in a Bloomberg Television interview. “We anticipate more quantitative easing to come,” he said.
Quantitative Easing
The Fed yesterday published minutes from its Sept. 21 meeting that showed that it will be ready “before long” to increase purchases of Treasuries. The U.S. central bank also discussed boosting inflation expectations as a way to prop up the economy.
National European benchmark indexes advanced in all 18 western markets today, except Luxembourg. The U.K.’s FTSE 100 gained 1.3 percent while Germany’s DAX and France’s CAC 40 both increased 1.7 percent.
ASML rallied 4.2 percent to 23.02 euros after Europe’s biggest semiconductor equipment maker said third-quarter profit rose to 268.5 million euros ($375 million), beating the 247 million-euro average of 21 analysts’ estimates compiled by Bloomberg. The company also reiterated that 2010 sales will reach a record.
STMicroelectronics NV, Europe’s largest chipmaker, rose 3.6 percent to 5.73 euros and Infineon Technologies AG, the region’s second-biggest, climbed 4.8 percent to 5.61 euros.
Larger U.S. rival Intel said it will generate $11.4 billion of fourth-quarter sales, plus or minus $400 million, beating an average estimate of $11.3 billion, according to data compiled by Bloomberg. The company cited strong demand from businesses and customers in emerging economies.
‘Fairly Bullish’
“We’ve been fairly bullish on the tech sector now for some time,” RCM’s Utermann said on Bloomberg Television’s On the Move with Francine Lacqua. “We thought it was going to be one of those sectors that would benefit most from any type of recovery. There is a lot of capital spending going on.”
JPMorgan also reported earnings today. The second-biggest U.S. bank said profit increased 23 percent as provisions for losses on mortgages, credit cards and other consumer loans fell $5.8 billion.
Standard Chartered fell 2.7 percent to 1,857.5 pence after the bank announced plans to sell shares at 1,280 pence for every eight that investors already own. That’s 33 percent less than yesterday’s closing price. Temasek Holdings Pte, which owns a 17.7 percent stake, will subscribe to its portion of the sale.
Drilling Ban Lifted
Transocean jumped 4.4 percent to 63.65 Swiss francs as the U.S. government lifted the ban on deep-water drilling that was introduced following the explosion at BP Plc’s Macondo well off the Louisiana coast which led to the world’s largest accidental oil spill.
Yesterday, Interior Secretary Ken Salazar ended the ban, which was scheduled to expire on Nov. 30, and said that oil companies must meet new safety requirements. Transocean owned the Deepwater Horizon oil rig that was destroyed when the well blew out.
CGGVeritas, the world’s largest seismic surveyor for oil and gas, rallied 7.7 percent to 17.85 euros. Petroleum Geo- Services ASA soared 5.8 percent to 73.5 kroner and TGS Nopec Geophysical Co. surged 12 percent to 99.25 kroner for the biggest gain in the Stoxx 600.
Rockhopper Exploration Plc plunged 17 percent to 383.75 pence after its advisers said resources may be lower than expected. The explorer, which is searching for oil and gas off the Falkland Islands, said it plans to hire a rig to drill more wells after consultants said that resources may be 30 percent less than estimated.
Aixtron, Fresnillo
Aixtron AG, a German maker of equipment used to produce light-emitting diode screens, jumped 8.2 percent to 22.33 euros. General Electric Co.’s lighting division may draw as much as 75 percent of sales from LED products within the next decade, compared with less than 10 percent now, the unit’s chief said.
Fresnillo Plc rose 2.5 percent to 1,272 pence after the world’s largest primary silver producer said its output increased to a record in the third quarter. The company also expects to “slightly beat” its full-year output forecasts for gold and silver.
Shares of Man Group Plc gained 2.9 percent to 264.3 pence after the hedge-fund manager said the weekly net asset value of Man AHL Diversified Futures Ltd. fund was $40.56 at the close of business on Oct. 11. That’s up 4.5 percent compared with the previous week’s close.
Burberry Group Plc dropped 2.6 percent to 1,012 pence after the U.K.’s largest luxury retailer said annual profit will be in the “top half” of analysts’ estimates, disappointing investors who had expected upgrades after second-quarter sales beat forecasts.
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