European Stock-Index Futures Retreat Before Fed Releases Minutes
Oct. 8 (Bloomberg) — European stock-index futures fell, after equities dropped to a seven-week low yesterday, as investors awaited minutes from the Federal Reserve’s last meeting. U.S. index futures rose, while Asian shares dropped.
Novartis AG may move after saying three division heads will leave following the completion of deals with GlaxoSmithKline Plc and Eli Lilly & Co. Gerresheimer AG may be active after reporting third-quarter profit that missed analysts’ estimates. Swisscom AG may move after Reuters reported Switzerland’s largest phone carrier is working with UBS AG on a possible sale of its Italian broadband unit.
Futures on the Euro Stoxx 50 Index expiring in December declined 0.6 percent to 3,052 at 7:12 a.m. in London. Contracts on the U.K.’s FTSE 100 Index lost 0.5 percent. Standard & Poor’s 500 Index futures gained 0.2 percent, while the MSCI Asia Pacific Index decreased 1.2 percent.
The Stoxx Europe 600 Index slumped 1.5 percent yesterday as the International Monetary Fund cut its forecasts for global growth and German industrial production contracted the most in more than five years.
The minutes of the Fed’s Sept 16-17 meeting, to be released at 2 p.m. in Washington, may reveal clues about the policy makers thinking on the timing of an interest-rate increase. Officials last month raised their median estimate for the benchmark federal funds rate to 1.375 percent by the end of 2015, compared with a June forecast of 1.125 percent. The rate has been in a range of zero to 0.25 percent since December 2008.
Alcoa Inc. unofficially starts the earnings-reporting season after markets close in New York.
China Services
An HSBC Holdings Plc/Markit Economics survey today showed growth in China’s services industry slowed to 53.5 last month from 54.1 in August. Readings above 50 indicate expansion.
Novartis may move. The Basel, Switzerland-based drugmaker said the heads of its vaccines, animal-health and over-the- counter divisions will leave after the completion of its purchase of Glaxo’s cancer unit in the first half of 2015 and sale of its animal-health business to Lilly in the first quarter of next year.
Gerresheimer may be active. The maker of syringes and inhalers reported third-quarter earnings of 67 euro cents a share, compared with analysts’ estimate of 74 euro cents.
Swisscom may move. The company is considering the sale of Fastweb, which may be worth 5 billion euros ($6.3 billion) and has been a target of Vodafone Group Plc, Reuters reported, citing people familiar with the situation.
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 Srinivasan Sivabalan
