European Stock-Index Futures Retreat Before ECB Policy Decision
Nov. 6 (Bloomberg) — European stock-index futures fell as investors awaited the European Central Bank’s monetary policy decision. U.S. index futures and Asian shares also declined.
Siemens AG may move after reporting a 28 percent increase in quarterly profit and announcing the sale of its hearing-aid unit. Societe Generale SA, Credit Agricole SA and Commerzbank AG may be active after the lenders reported higher third-quarter profit. Zurich Insurance Group AG may move after posting a 16 percent drop in quarterly profit. Adecco SA may be active after saying revenue growth slowed.
Futures on the Euro Stoxx 50 Index expiring in December slipped 0.2 percent to 3,074 at 7:09 a.m. in London. The Stoxx Europe 600 Index rose yesterday for the first time in three days as companies from Marks & Spencer Group Plc to Natixis SA posted better-than-estimated earnings. Contracts on the U.K.’s FTSE 100 Index lost less than 0.1 percent today. Standard & Poor’s 500 Index futures lost 0.2 percent, while the MSCI Asia Pacific Index fell 0.5 percent.
The ECB is expected to hold rates at record lows when it meets for the first time since the Bank of Japan boosted its unprecedented stimulus, a move that fueled gains in the nation’s equities. The Bank of England is also seen holding rates today.
A flagging euro-area economy and increased monetary stimulus from the BOJ have put pressure on Europe’s policy makers to do more to support recovery. More than half of the economists surveyed by Bloomberg News predict the ECB will eventually embark on large-scale sovereign-bond purchases.
Investors are also watching corporate earnings, with 45 companies in the Stoxx 600 scheduled to release results today.
Siemens Profit
Siemens may move. Europe’s largest engineering company said so-called sector profit increased to 2.2 billion euros ($2.75 billion) in the fourth quarter, in line with the average analyst estimate. Siemens also announced the sale of its hearing-aid unit to private-equity firm EQT Partners AB and the Struengmann family for 2.15 billion euros.
Societe Generale may be active. France’s second-largest bank said third-quarter profit rose 57 percent to 836 million euros, as it set aside less money for bad loans and potential legal costs. Earnings missed the 872 million-euro average estimate of analysts.
Credit Agricole may move. France’s third-largest bank said third-quarter profit rose 4.1 percent to 758 million euros, helped by higher earnings at its corporate and investment bank, while slow economic growth weighed on consumer banking. That beat the 743 million-euro average estimate of analysts surveyed by Bloomberg.
Commerzbank Beats
Commerzbank may be active. Germany’s second-largest lender posted third-quarter profit of 225 million euros, exceeding the 185.5 million-euro profit projected by analysts, as provisions for risky loans decreased and sales rose.
Zurich Insurance may move. Switzerland’s biggest insurer said third-quarter profit dropped 16 percent to $928 million as income from general insurance declined. That missed the $1.04 billion average estimate of analysts surveyed by Bloomberg.
Adecco may be active. The supplier of temporary workers said revenue expansion slowed in the third-quarter versus the first half of the year because of weaker growth in France and Germany.
To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Alan Soughley
