European Stocks Advance; BHP Billiton, Vedanta, Infineon Gain
By Adria Cimino
June 1 (Bloomberg) -- European stocks climbed for a second day, paced by mining and technology companies, after copper and gold rose in Asia and U.S. computer maker Dell Inc. reported earnings that topped analysts' estimates.
BHP Billiton and Vedanta Resources Plc led gains by raw- materials producers. Infineon Technologies AG, Europe's second- largest chipmaker, and Dutch semiconductor-equipment maker ASML Holding NV also rose.
``Mining stocks are the strong point of the European stock market,'' said Pierre-Yves Gauthier, head of strategy at Oddo & Cie. in Paris. ``There's no reason for performance to stop. Dell's earnings are a good sign for the technology industry.''
Gains in the mining and technology industries helped the Dow Jones Stoxx 600 Index rise 2.5 percent last month, the third monthly gain in a row. The measure is trading at its highest since September 2000 and just 9 points short of a record.
``The resurging demand for metals should support mining stocks,'' said Ulrike Pfuhl, a Frankfurt-based portfolio manager for JPMorgan Asset management, which oversees $847 billion. ``Technology stocks have significantly underperformed for the past few months. There's some catching up to do.''
The Stoxx 600 added 0.4 percent to 398.33 as of 9:29 a.m. in London, heading for a 1.2 percent gain this week. The Stoxx 50 increased 0.4 percent as did the Euro Stoxx 50, a measure for the 13 nations sharing the euro.
The Dow Jones Industrial Average fell less than 0.1 percent in the U.S. yesterday, while the Standard & Poor's 500 rose less than 0.1 percent. Technology shares climbed on better-than- forecast earnings. Asian stocks today advanced to a second- straight record, led by mining and electronics companies.
National Benchmarks
National benchmarks rose in 13 of the 17 western European markets that were open. The U.K.'s FTSE 100 added 0.4 percent. France's CAC 40 and Germany's DAX climbed 0.5 percent.
BHP, the world's largest mining company, rose 1 percent to 1242 pence, while Vedanta Resources, India's largest producer of copper and zinc, advanced 0.9 percent to 1504 pence. Salzgitter AG, Germany's second-largest steelmaker, advanced 1.2 percent to 144.20 euros.
Copper prices in Shanghai advanced for a second day after global inventories fell to a seven-month low and as demand for the metal in China, the world's biggest consumer, is forecast to rise this year.
Copper for August delivery on the Shanghai Futures Exchange rose as much as 890 yuan, or 1.4 percent, to 66,000 yuan ($8,631) a ton. Gold and silver also gained in Asia.
``I've never given up on the story'' of mining stocks, said Stephen Pope, head of equity research at Cantor Fitzgerald LP in London. ``People need resources in the ground to build infrastructure.''
Dell Earnings
Infineon increased 1.7 percent to 11.72 euros. ASML gained 1.8 percent to 19.60 euros.
Dell, the world's second-largest personal-computer maker, said profit excluding some costs was 36 cents, surpassing the average 27-cent estimate in a Bloomberg survey of analysts. Sales totaled $14.6 billion, compared with the $14.1 billion analysts on average anticipated.
Spot prices for the benchmark dynamic random access memory chip climbed for a third session yesterday after iSuppli Corp. said DRAM makers' profitability will probably recover from June on demand from computer makers.
Employers in the U.S. increased hiring last month, signaling the economy is rebounding from the weakest growth in four years, economists expect a report today to show. The projected 134,000 increase in payrolls is based on the median estimate of 84 economists surveyed by Bloomberg News. The jobless rate is forecast to hold at 4.5 percent for a second month. The report is set for 8:30 a.m. Washington time.
`Crucial' Data
``The labor market data this afternoon will be crucial,'' said JPMorgan's Pfuhl. ``Some investors will keep their powder dry before a flurry of U.S. economic data will be released today.''
NH Hoteles SA, Spain's largest chain of business hotels, climbed 2.9 percent to 16.74 euros. Negocio said competitor Hesperia SA is studying a 2.8 billion-euro ($3.8 billion) hostile takeover bid for the company. The newspaper cited people with knowledge of the plans without naming them. A Hesperia spokeswoman denied the report.
Imerys SA, the world's biggest producer of minerals used to add color to paper and paint, jumped 3.7 percent to 76.82 euros. UBS AG raised its recommendation on the stock to ``buy'' from ``neutral'' citing a planned tax break in France.
The housing market will benefit from French President Nicolas Sarkozy's plan to make interest payments on mortgages tax deductible, Araceli Strassburger, a UBS analyst, wrote in a note.
Punch Taverns
Punch Taverns Plc, the largest U.K. pub landlord by outlets, advanced 2.5 percent to 1377 pence. Goldman, Sachs & Co. added the stock to its ``Conviction Buy'' list and raised its recommendation on the shares to ``buy'' from ``neutral'' citing the company's business model and ``ambitious'' acquisition strategy.
Banca Italease SpA plunged 13 percent to 31.68 euros. The stock slid 2.5 percent yesterday after MF reported that the lender's chairman will soon present to the board the results of an internal investigation into the relationship between its chief executive and a real-estate investor who is facing criminal charges.
The bank on May 3 said Chief Executive Officer Massimo Faenza was ``confident'' about the outcome of the probe and that he's innocent.
National Bank of Greece SA, PPR, Lanxess AG, Valeo SA and Bourbon SA are all trading today without the right to their latest dividend.
By Adria Cimino
June 1 (Bloomberg) -- European stocks climbed for a second day, paced by mining and technology companies, after copper and gold rose in Asia and U.S. computer maker Dell Inc. reported earnings that topped analysts' estimates.
BHP Billiton and Vedanta Resources Plc led gains by raw- materials producers. Infineon Technologies AG, Europe's second- largest chipmaker, and Dutch semiconductor-equipment maker ASML Holding NV also rose.
``Mining stocks are the strong point of the European stock market,'' said Pierre-Yves Gauthier, head of strategy at Oddo & Cie. in Paris. ``There's no reason for performance to stop. Dell's earnings are a good sign for the technology industry.''
Gains in the mining and technology industries helped the Dow Jones Stoxx 600 Index rise 2.5 percent last month, the third monthly gain in a row. The measure is trading at its highest since September 2000 and just 9 points short of a record.
``The resurging demand for metals should support mining stocks,'' said Ulrike Pfuhl, a Frankfurt-based portfolio manager for JPMorgan Asset management, which oversees $847 billion. ``Technology stocks have significantly underperformed for the past few months. There's some catching up to do.''
The Stoxx 600 added 0.4 percent to 398.33 as of 9:29 a.m. in London, heading for a 1.2 percent gain this week. The Stoxx 50 increased 0.4 percent as did the Euro Stoxx 50, a measure for the 13 nations sharing the euro.
The Dow Jones Industrial Average fell less than 0.1 percent in the U.S. yesterday, while the Standard & Poor's 500 rose less than 0.1 percent. Technology shares climbed on better-than- forecast earnings. Asian stocks today advanced to a second- straight record, led by mining and electronics companies.
National Benchmarks
National benchmarks rose in 13 of the 17 western European markets that were open. The U.K.'s FTSE 100 added 0.4 percent. France's CAC 40 and Germany's DAX climbed 0.5 percent.
BHP, the world's largest mining company, rose 1 percent to 1242 pence, while Vedanta Resources, India's largest producer of copper and zinc, advanced 0.9 percent to 1504 pence. Salzgitter AG, Germany's second-largest steelmaker, advanced 1.2 percent to 144.20 euros.
Copper prices in Shanghai advanced for a second day after global inventories fell to a seven-month low and as demand for the metal in China, the world's biggest consumer, is forecast to rise this year.
Copper for August delivery on the Shanghai Futures Exchange rose as much as 890 yuan, or 1.4 percent, to 66,000 yuan ($8,631) a ton. Gold and silver also gained in Asia.
``I've never given up on the story'' of mining stocks, said Stephen Pope, head of equity research at Cantor Fitzgerald LP in London. ``People need resources in the ground to build infrastructure.''
Dell Earnings
Infineon increased 1.7 percent to 11.72 euros. ASML gained 1.8 percent to 19.60 euros.
Dell, the world's second-largest personal-computer maker, said profit excluding some costs was 36 cents, surpassing the average 27-cent estimate in a Bloomberg survey of analysts. Sales totaled $14.6 billion, compared with the $14.1 billion analysts on average anticipated.
Spot prices for the benchmark dynamic random access memory chip climbed for a third session yesterday after iSuppli Corp. said DRAM makers' profitability will probably recover from June on demand from computer makers.
Employers in the U.S. increased hiring last month, signaling the economy is rebounding from the weakest growth in four years, economists expect a report today to show. The projected 134,000 increase in payrolls is based on the median estimate of 84 economists surveyed by Bloomberg News. The jobless rate is forecast to hold at 4.5 percent for a second month. The report is set for 8:30 a.m. Washington time.
`Crucial' Data
``The labor market data this afternoon will be crucial,'' said JPMorgan's Pfuhl. ``Some investors will keep their powder dry before a flurry of U.S. economic data will be released today.''
NH Hoteles SA, Spain's largest chain of business hotels, climbed 2.9 percent to 16.74 euros. Negocio said competitor Hesperia SA is studying a 2.8 billion-euro ($3.8 billion) hostile takeover bid for the company. The newspaper cited people with knowledge of the plans without naming them. A Hesperia spokeswoman denied the report.
Imerys SA, the world's biggest producer of minerals used to add color to paper and paint, jumped 3.7 percent to 76.82 euros. UBS AG raised its recommendation on the stock to ``buy'' from ``neutral'' citing a planned tax break in France.
The housing market will benefit from French President Nicolas Sarkozy's plan to make interest payments on mortgages tax deductible, Araceli Strassburger, a UBS analyst, wrote in a note.
Punch Taverns
Punch Taverns Plc, the largest U.K. pub landlord by outlets, advanced 2.5 percent to 1377 pence. Goldman, Sachs & Co. added the stock to its ``Conviction Buy'' list and raised its recommendation on the shares to ``buy'' from ``neutral'' citing the company's business model and ``ambitious'' acquisition strategy.
Banca Italease SpA plunged 13 percent to 31.68 euros. The stock slid 2.5 percent yesterday after MF reported that the lender's chairman will soon present to the board the results of an internal investigation into the relationship between its chief executive and a real-estate investor who is facing criminal charges.
The bank on May 3 said Chief Executive Officer Massimo Faenza was ``confident'' about the outcome of the probe and that he's innocent.
National Bank of Greece SA, PPR, Lanxess AG, Valeo SA and Bourbon SA are all trading today without the right to their latest dividend.
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