European Stock-Index Futures Rise as BOJ Expands Stimulus

By Sofia Horta e Costa 

Most European stocks gained, following the Stoxx Europe 600 Index’s biggest drop in five weeks yesterday, as the Bank of Japan (8301) doubled its bond-buying program in an attempt to stimulate the economy. U.S. index futures rose, while Asian shares fell.

BTG Plc surged 7.6 percent after increasing its sales forecast for 2013. Banca Generali SpA lost 4.6 percent after Assicurazioni Generali SpA offered part of its stake for sale.

The Stoxx 600 (SXXP) added 0.1 percent to 295.06 at 8:05 a.m. in London as more than two stocks rose for every one that fell. The equity benchmark dropped 0.9 percent yesterday and the S&P 500 retreated from a record high in New York as U.S. services and jobs data missed forecasts. Standard & Poor’s 500 Index futures rose 0.3 percent today, while the MSCI Asia Pacific Index slipped 0.4 percent.

Asian shares pared losses today after the Bank of Japan strengthened a stimulus program that will see the central bank buy 7 trillion yen ($73 billion) of bonds a month.

The European Central Bank will leave its benchmark interest rate at a record low of 0.75 percent today, according to 54 of 56 economists in a Bloomberg News survey. Two predicted a cut to 0.5 percent. The central bank announces its decision at 1:45 p.m. in Frankfurt and PresidentMario Draghi holds a press conference 45 minutes later.

In the U.K., the Bank of England’s Monetary Policy Committee holds its first meeting since U.K. Chancellor of the Exchequer George Osborne reaffirmed the bank’s 2 percent inflation target while giving it more flexibility on hitting the goal. The bank will leave its key rate at a record low of 0.5 percent and maintain bond purchases at 375 billion pounds ($566 billion) at 12 p.m. in London, according to the median estimates in Bloomberg surveys of economists.

To contact the reporter on this story: Sofia Horta e Costa in London atshortaecosta@bloomberg.net

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