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European stocks rose, rebounding from their biggest decline in almost two weeks, amid speculation that economic data will improve and as Portugal’s politicians reached an agreement to hold the governing coalition together. U.S. index futures gained and Asian shares fell.
The Stoxx 600 increased 1.4 percent to 292.26 at 11:10 a.m. in London. Standard & Poor’s 500 Index futures added 0.6 percent after the equity benchmark rose 1 percent on July 5 after a better-than-forecast payrolls report.
In Portugal, Prime Minister Pedro Passos Coelho proposed that Paulo Portas, leader of the junior party in the governing coalition, become vice premier. The appointment helps cement a deal to hold the coalition together. Portugal’s PSI 20 Index retreated 2.7 percent last week when Portas resigned after Coelho appointed a new finance minister.
ECB President Mario Draghi speaks at the quarterly hearing of the Committee on Economic and Monetary Affairs of the European Parliament at 3 p.m. in Brussels.
In Germany, a report showed that industrial production declined 1 percent in May, more than the 0.5 percent drop, which was the median forecast of economists in. It surged a revised 2 percent in April.
Novartis climbed 1.7 percent to 68.75 Swiss francs, contributing the most to the Stoxx 600’s gain, as the company said its secukinumab drug proved better at clearing the skin of people with plaque psoriasis than Enbrel.
Lloyds Banking Group Plc advanced 2.7 percent to 66.4 pence. Former Standard Chartered Chairman Mervyn Davies is assembling a group of investors to bid for part of the U.K. government’s 39 percent stake in the lender, according to a person with knowledge of the talks. The group has yet to reach an agreement with the Treasury, the person added.
Bovis Homes advanced 4.6 percent to 810.5 pence after the U.K. housebuilder said that increased volume and higher margins led to a bigger profit in the first half. The company said it will probably report a housing gross margin of about 23 percent, compared with 20.9 percent a year earlier.
Hikma Pharmaceuticals Plc surged 8 percent to 1,073 pence, its highest price since at least November 2005, after the company raised its full-year revenue forecast. It predicted that group revenue will grow by about 17 percent in 2013, compared with a previous projection of about 13 percent.
FTSE 100 6,437.26 +61.74 +0.97%
CAC 40 3,821.48 +67.63 +1.80%
DAX 7,977.21 +171.21 +2.19%
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