European stocks rose for a second day, led by mining companies, after the Federal Reserve maintained its stimulus plans. Asian shares and U.S. futures fluctuated as Standard & Poor’s cut Japan’s credit rating. Fresnillo Plc, the world’s largest primary silver company, jumped the most in three weeks, while BHP Billiton Ltd. and Rio Tinto Group gained more than 1 percent. AstraZeneca Plc climbed after fourth-quarter profit beat analysts’ estimates. Novartis AG retreated after saying earnings fell. Hennes & Mauritz AB sank as results missed analysts’ estimates. The benchmark Stoxx Europe 600 Index rose 0.2 percent to 283.02 at 10:39 a.m. in London. Stocks in Europe advanced yesterday ahead of the policy announcement from the Fed as investors bet the central bank would continue to support the recovery even as growth accelerates. The MSCI Asia Pacific Index added less than 0.1 percent today, paring an earlier advance of as much as 0.6 percent. Futures on the Standard & Poor’s 500 Index expiring in March gained 0.1 percent. “Markets were very happy the Fed announced it will keep buying Treasuries,” said Michael Koehler, head of strategy at Landesbank Baden-Wuerttemberg in Mainz. “Japan’s downgrade confirms once again that we haven’t solved the sovereign-debt issue.” ‘Extended Period’ U.S. stocks rose yesterday, sending the Dow Jones Industrial Average above 12,000 for the first time since June 2008, after the Fed left its benchmark interest rate in a range of zero to 0.25 percent, where it’s been since December 2008, and retained a pledge in place since March 2009 to keep it “exceptionally low” for an “extended period.” Officials closed ranks to signal that an improving economy won’t derail their plan to cut unemployment by pumping $600 billion into the financial system. The pace of recovery is “insufficient to bring about a significant improvement in labor market conditions,” the Federal Open Market Committee said yesterday in a statement in Washington that won unanimous support for the first time in 13 months. Stocks in Asia and U.S. futures gave up an earlier advance as Japan’s sovereign credit rating was downgraded for the first time since 2002, on concern Prime Minister Naoto Kan hasn’t done enough to curb the world’s largest debt load. “The downgrade reflects our appraisal that Japan’s government debt ratios -- already among the highest for rated sovereigns -- will continue to rise further than we envisaged before the global economic recession hit the country,” S&P said in a statement today, cutting the domestic local-currency rating from AA after lowering the outlook for the rank in January 2010. Durable Goods In the U.S., reports today may provide more evidence that the economic is gathering strength. Data due at 8:30 a.m. in Washington may show orders for durable goods rose in December, while the Labor Department may say job losses were little changed near the lowest level in more than two years. The housing market, the industry that triggered the recession, may be stabilizing at depressed levels. A report from the National Association of Realtors due at 10 a.m. New York time will show pending home sales, or contract signings for previously owned homes, rose 1 percent in December after a 3.5 percent gain the prior month, according to economists’ forecasts. Contain Crisis The Stoxx Europe 600 Index has rallied 2.7 percent this year amid better-than-forecast economic reports and speculation that European leaders will increase their efforts to contain the region’s sovereign-debt crisis. Twenty-six companies in the Stoxx 600 are scheduled to report earnings this week. In the U.S., Caterpillar Inc., AT&T Inc. and Microsoft Corp. are among companies that will announce results today. European basic-resource shares posted the best performance among 19 industry groups in the Stoxx 600 as metal prices rose. Fresnillo surged 4.7 percent to 1,392 pence. BHP Billiton, the world’s biggest mining company, gained 1.1 percent to 2,473.5 pence, while Rio Tinto, the third-largest, advanced 1.3 percent to 4,458.5 pence. Aluminum, copper, lead, nickel, tin and zinc all climbed on the London Metal Exchange. Petropavlovsk Plc increased 5.9 percent to 1,093 pence. The producer of gold in Russia forecast output will rise 18 percent in 2011 after the company missed estimates last year because of extreme local weather and late deliveries of equipment. AstraZeneca, Software AstraZeneca rallied 1.8 percent to 3,129.5 pence. Net income rose to $1.62 billion from $1.55 billion for the same period a year earlier, the London-based drugmaker said today in a statement. The average estimate of 17 analysts surveyed by Bloomberg was 93 cents a share. Profit excluding some items was $1.39 a share, compared with the $1.33 average estimate of 21 analysts. Software AG increased 1.5 percent to 105.40 euros after Germany’s second-largest maker of business software said net income climbed to 64.7 million euros ($88.7 million) from 48.1 million euros a year earlier. Analysts had predicted profit of 57.8 million euros, according to the average of 12 estimates in a Bloomberg survey. Mitchells & Butlers Plc, the U.K. owner of Harvester and Toby Carvery pubs and restaurants, jumped 2.7 percent to 352.2 pence. The company said sales at outlets open at least a year gained 2.5 percent in the nine weeks ended Jan 22, led by food. Britvic Plc surged 3.2 percent to 463 pence, the biggest advance in two months. The maker of Robinson’s fruit drinks said fiscal first-quarter revenue rose 20 percent to 288.2 million pounds ($459 million) after an acquisition in France. Novartis lost 2 percent to 53.35 Swiss francs. Net income dropped to $2.17 billion in the fourth quarter from $2.31 billion a year earlier, the company said. Analysts predicted $2.05 billion, according to the average of 10 estimates compiled by Bloomberg over the past month. Sales increased 10 percent to $14.2 billion. Profit was hurt by $789 million of one-time costs, including for restructurings in the U.S. and Germany. H&M, Air Berlin Hennes & Mauritz sank 6 percent to 214.90 kronor, the biggest drop in four months. Europe’s second-largest clothing retailer said fourth-quarter net income fell to 5.49 billion kronor ($850 million) from 6.15 billion kronor a year earlier. Analysts on average predicted net income of 5.98 billion kronor, a survey of 15 analyst estimates compiled by Bloomberg showed. Air Berlin Plc fell 5.2 percent to 3.56 euros after Germany’s second biggest airline said it expects to post a full- year loss before interest and taxes in 2010 due to “exceptional circumstances” in the months of November and December, including adverse weather conditions and labor strikes. To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net. To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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