uropean Stocks Advance Before Italian Debt Auction

European (SXXP) stocks rose, rebounding from yesterday’s selloff, before Italy auctions as much as $5 billion worth of long-term debt today. U.S. futures were little changed while Asian shares fell.

European Aeronautic, Defence & Space Co. gained 4 percent after predicting earnings will rise in 2013. Anheuser-Busch InBev NV fell 1.2 percent after saying it expects 2013 to be a challenging year. Holcim Ltd declined 1.2 percent after the world’s largest cement maker reported a wider-than-estimated fourth-quarter loss.

The Stoxx Europe 600 Index advanced 0.3 percent to 285.54 at 8:06 a.m. in London, rebounding from yesterday’s 1.3 percent drop. Standard & Poor’s 500 Index futures fell less than 0.1 percent today and the MSCI Asia Pacific Index lost 0.2 percent.

“The Italian bond market comes into play once again today,” Chris Weston, chief market strategist at IG Markets in Melbourne, wrote in an e-mail. “Given the spike higher in bond yields yesterday, the underlying market is now trading higher than the previous auction, so inevitably we’ll hear that it is paying higher yields. Investors will keep an eye on any bids to cover where the last ten-year auction saw a poor 1.32 times.”

The Stoxx 600 tumbled yesterday after Italy’s inconclusive parliamentary election sent the Mediterranean nation’s borrowing costs to the highest level in four months, renewing concern that the euro area’s debt crisis may deepen.

Italy will test markets today as it seeks to sell as much as 4 billion euros ($5 billion) of a new 10-year bond and 2.5 billion euros of a 5-year benchmark note.

Bernanke Comments

In the U.S., the benchmark S&P 500 Index rose 0.6 percent amid better-than-estimated housing and consumer confidence data and as Federal Reserve Chairman Ben S. Bernanke dismissed concerns that record easing risks sparking inflation or fueling asset price bubbles.

As many as 24 companies on the Stoxx 600 are scheduled to report results today, according to data compiled by Bloomberg. Of those that have posted earnings since January 8, 52 percent have beaten analysts’ estimates, while 62 percent have topped revenue forecasts, the data show.

EADS rose 1.41 euros to 36.27 euros after it reported a 68 percent increase in full year earnings before interest, taxes and one-time items to 3 billion euros, beating the average analyst estimate of 2.57 billion euros. The company also predicted profit will gain in 2013 as its Airbus SAS aircraft division lifts output and demand for commercial helicopters rebounds.

Bouygues Margins

Bouygues SA (EN) increased 4.2 percent to 20.21 euros. France’s second-largest building company forecast margins will widen this year after reporting a 41 percent drop in 2012 profit to 633 million euros as its phone unit business suffered from competition. Earnings still beat an average analyst estimate of 584 million euros.

Vodafone Group Plc increased 1.7 percent to 164.6 pence as it was said to have put on hold plans to approach Kabel Deutschland Holding AG about a takeover bid after leaks of a potential offer complicated internal discussions.

Vodafone, which had intended to contact Kabel Deutschland after the cable provider’s earnings report last week, no longer has a time frame for a possible approach, according to three people familiar with the matter who asked not to be identified because the deliberations are confidential.

Kabel Deutschland slid 4.7 percent to 66.30 euros.

AB Inbev

AB Inbev (ABI) fell 84 cents to 68.93 euros. The company posted a 9.9 percent increase in fourth-quarter earnings before interest, taxes, depreciation and amortization to $4.39 billion as it sold more higher-priced beer in the U.S. and Brazil. That compares with the $4.36 billion median estimate of nine analysts surveyed by Bloomberg.

The brewer, which gets most of its profit from the U.S. and Brazil, said volume in the first quarter in the U.S. will be hit by pressure on consumer disposable income, while beer sales in Brazil by that measure will grow by low to mid-single digits in the full year.

“While we expect 2013 to be another year of challenge and uncertainty in the global economic environment, we will continue to work for the long-term growth of our business and shareholder value,” the company said.

Holcim slipped 85 cents to 71.05 euros after the cement maker reported a loss of 161 million Swiss francs ($172.7 million) amid restructuring charges. Analysts predicted a loss of 79.3 million francs. Revenue also fell short of estimates.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

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