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European stocks advanced for a sixth day, the longest winning streak this year, as services output shrank at a slower pace than initially estimated last month. U.S. index futures were little changed, while Asian shares fell.
The Stoxx Europe 600 Index advanced 0.5 percent to 305.62 at 10:24 a.m. in London, the highest since May 29. The benchmark gauge rose every day last week, adding 1.8 percent in the period, as European Central Bank President Mario Draghi said interest rates in the euro zone will remain low for an extended period. The measure has rallied 9.3 percent in 2013.
The Stoxx 600 is trading at 13.9 times estimates earnings, the most expensive since December 2009, according to data compiled by Bloomberg. The volume of share changing hands in the index was 29 percent less than the 30-day average today,.
Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said. That’s above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction. A measure of U.K. services growth climbed more than forecast to the highest level in more than six years.
A report at 10 a.m. New York time may show the Institute for Supply Management’s index of U.S. non-manufacturing businesses rose to 53.1 in July from the prior month’s 52.2, according to survey of economists. The ISM services survey covers industries ranging from utilities and retailing to housing, health care and finance.
Lloyds jumped 4.4 percent to 77 pence, the highest price since September 2010. Chief Executive Officer Antonio Horta-Osorio said during investor presentations that he plans to pay 60 percent to 70 percent of earnings as dividends by 2015, according to a report by the Financial Times, which cited unidentified people involved in the meetings.
CNP Assurances (CNP) jumped 3.5 percent to 13.55 euros. Exane BNP Paribas analyst Thomas Jacquet boosted his rating on France’s largest life insurer to outperform from neutral, while raising the share-price estimate by 31 percent.
Mediaset rose 3.9 percent to 3.43 euros. Deutsche Bank AG analyst Laurie Davison upgraded the broadcaster controlled by Silvio Berlusconi to buy from hold, saying pullbacks in the share price offer attractive entry points.
Drax added 3.3 percent to 675 pence after Goldman Sachs Group Inc. lifted its rating on the operator of U.K.’s largest coal-fired power station to conviction buy from neutral.
FTSE 100 6,661.1 +13.23 +0.20%
CAC 40 4,058.48 +12.83 +0.32%
DAX 8,422.93 +15.99 +0.19%
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