European stocks advanced for a second day before the European Central Bank’s monthly rate decision and the release of a key U.S. business survey. U.S. index futures and Asian shares also advanced. Diageo Plc (DGE), the maker of Johnnie Walker, J&B and Buchanan’s scotch whiskeys, rose after saying it will invest in scotch whiskey production. Raiffeisen Bank International AG declined after the German and Austrian lenders had their credit ratings cut by Moody’s Investors Service.
The Stoxx Europe 600 Index (SXXP) added 0.8 percent to 236.51 at 8:10 a.m. in London. The benchmark has declined 13 percent from its 2012 high on March 16 amid growing concern that Greece will be forced to leave the euro currency union. Standard & Poor’s 500 Index futures gained 0.5 percent, while the MSCI Asia Pacific Index added 1.2 percent.
European stocks advanced yesterday for the first day in five as the U.S. services industry expanded at a faster pace than forecast and finance ministers and central bank governors from the Group of Seven economies agreed to coordinate their response to the euro area’s sovereign-debt crisis.
“While expecting a policy change from the ECB this afternoon will be premature, there’s a growing sense policymakers are closing in on taking action on Spain,” said Witold Bahrke, a senior strategist at PFA Pension A/S in Copenhagen, where he helps oversee $55 billion. “The decline in stocks in recent weeks was so strong we had to see some sort of rebound, even without any materially good news out there yet.”
source: www.bloomberg.com
