European stocks advance amid Central Bank stimulus speculation
By Bloomberg
European stocks rose as investors speculated that the euro region's central bank will increase stimulus measures at its meeting this week. U.S. stock-index futures and Asian shares climbed.
ICAP Plc gained 0.6 percent after three people familiar with the situation said it is seeking to sell its Brazil business serving individuals. Danone increased 1.7 percent after splitting its chairman's dual roles.
The Stoxx Europe 600 Index added 0.3 percent to 343.65 at 8:10 a.m. in London. The benchmark gauge has rebounded 5.8 percent from a four-month low on Aug. 8 as European Central Bank President Mario Draghi signaled policy makers are ready to increase stimulus to combat low inflation. Standard & Poor's 500 Index contracts advanced 0.2 percent today, while the MSCI Asia Pacific Index gained 0.7 percent.
Central-bank stimulus has helped the Stoxx 600 rally about 60 percent from its low in September 2011. Since taking over in November of that year, Draghi has pledged to hold borrowing costs low and said in July 2012 he would do "whatever it takes" to save the euro.
In June of this year, the ECB took its deposit rate negative for the first time and cut its benchmark rate to a record low of 0.15 percent. The ECB meets to discuss monetary policy on Sept. 4.
In the U.S., a report at 10 a.m. in Washington may show factory orders rose 11 percent in July, compared with a 1.1 percent gain in June, according to the median estimate of economists surveyed by Bloomberg News. The Federal Reserve releases its Beige Book review of regional economic conditions at 2 p.m.
ICAP Brazil
ICAP increased 0.6 percent to 380.3 pence. The world's biggest broker of transactions between banks is looking to sell its subsidiary in Brazil amid a trading slump, according to the people. ICAP is offering the brokerage to other firms including banks and private-equity funds, they said, asking not to be named because the discussions are private.
Danone added 1.7 percent to 54.60 euros. The world's biggest yogurt maker appointed Emmanuel Faber as chief executive officer, while Franck Riboud remains chairman. The separation of the positions will help pave the way for "a smooth succession," Paris-based Danone said late yesterday.
ING Groep NV climbed 0.8 percent to 10.63 euros. The biggest Dutch financial-services company said it will reduce its stake in a former U.S. insurance unit, Voya Financial Inc., by selling $1.18 billion in shares.