BLBG : European, Asian Shares Rise, U.S. Futures Gain; STMicro Climbs
Sept. 10 (Bloomberg) -- European and Asian shares climbed, sending the MSCI World Index higher for a sixth day, after Texas Instruments Inc. raised its forecasts and China Yurun Food Group Ltd. reported higher earnings. U.S. index futures gained.
STMicroelectronics NV advanced 3.1 percent after Texas Instruments, the second-biggest U.S. chipmaker, boosted its third-quarter sales and profit estimates on improving demand for chips used in some industrial applications, computers and consumer electronics. China Yurun, the country’s biggest hog processor, jumped 6.9 percent as profit rose 37 percent.
The MSCI World of 23 developed nations added 0.3 percent to 1,110.03 at 8:19 a.m. in London, the highest level since October 2008. Europe’s Dow Jones Stoxx 600 Index increased for a sixth day, adding 0.5 percent. The regional gauge, which has surged 53 percent since March 9, is valued at 46.5 times profit, the highest level since 2003, weekly Bloomberg data show.
“The market is fair value,” said Koen Jonckheere at KBC Asset Management in Brussels, whose KBC European equity fund is up 50 percent since March 9. “You can get high quality stocks at fair value. If you buy stocks you should be in for the long term.”
The MSCI Asia Pacific Index rallied 1.5 percent today to a one-year high as Li & Fung Ltd., the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp., said it is seeing “pretty strong” re-orders from retailers.
U.S. Futures
Futures on the Standard & Poor’s 500 Index advanced 0.5 percent, indicating the benchmark gauge for U.S. stocks may rise for a fifth straight day.
STMicroelectronics, Europe’s biggest semiconductor maker, added 3.1 percent to 6.66 euros, while Elpida Memory Inc., Japan’s largest computer memory maker, added 3.4 percent to 1,319 yen in Tokyo.
Texas Instruments said yesterday that third-quarter profit will be 37 cents to 41 cents a share on sales of $2.73 billion to $2.87 billion. Analysts had projected profit of 35 cents a share and revenue of $2.68 billion on average, according to a Bloomberg survey.
Demand is beginning to recover for so-called analog chips - - semiconductors used in devices such as electronic utility meters, computer disk drives and consumer electronics. China and India led the rebound, Texas Instruments said. The shares climbed 0.7 percent to $25.31 in Germany.
ASML Holding NV gained 6.7 percent to 21.46 euros. Europe’s largest maker of semiconductor equipment raised its sales forecast as customers resume buying its machines.
‘Creep Up’
China Yurun added 6.9 percent to HK$14.98 after its first- half profit rose 37 percent to HK$841 million ($108.5 million).
Li & Fung gained 4.4 percent to HK$30. Bruce Rockowitz, the company’s president, told Bloomberg Television today that spending by consumers has started to “creep up.”
Bank of England policy makers will probably keep pursuing their 175 billion-pound ($290 billion) emergency stimulus program today as the British economy shows signs of lagging behind the global recovery.
The central bank, led by Governor Mervyn King, will reiterate the size of its plan to buy bonds with newly created money, according to all 35 economists in a Bloomberg News survey. Policy makers will also keep the benchmark interest rate at a record low of 0.5 percent, all 60 economists in a separate survey said.
