Stocks get a boost in Europe

European stocks rose for the first time in seven days and US index futures climbed after InBev NV offered a record $46.3 billion in cash for Anheuser-Busch Cos and banks rebounded from their cheapest in two months.

Anheuser-Busch jumped in Frankfurt, and InBev rose in Brussels. Premiere AG, Germany's biggest pay-television company, and Banco Popular Espanol SA also climbed on bid speculation. Commerzbank AG rebounded from its lowest close since March, while HBOS Plc, a mortgage lender, rallied after its steepest one-day drop in three months. Vedanta Resources Plc led a recovery in mining companies after Goldman Sachs Group Inc. recommended the shares.

Europe's Dow Jones Stoxx 600 Index advanced 1 percent to 304.32 at 1:32 pm, snapping a six-day retreat, the longest losing streak since 2005. This index fell 17 percent this year on concern credit-related losses approaching $400 billion, rising oil prices and higher inflation will erode earnings.

"You will see companies that are still strong doing deals," said Philippe Gijsels, senior equity strategist at Fortis Global Markets, which has $62 billion in Brussels. "Balance sheets are healthy."

Stocks extended gains after a report showed retail sales in the US increased twice as much as forecast in May.

Futures on the Standard & Poor's 500 Index rose 1 percent, while the MSCI Asia Pacific Index lost 2.6 percent.

National indexes increased in 15 of 18 western European markets that were open. France's CAC 40 added 0.7 percent, and Germany's DAX rose 1 percent. The UK's FTSE 100 also advanced 1 percent.

Premiere rallied 4.9 percent to 13.98 euros on speculation that News Corp will make a takeover offer for the company. News Corp, run by Rupert Murdoch, has acquired a 25 percent stake in Premiere since January.

"The rumor that News Corp. will make a bid for the rest of Premiere is doing the rounds again," said Thomas Nagel, a trader at Equinet AG in Frankfurt.

Popular jumped 6.6 percent to 9.87 euros after Negocio reported a group of five Mexican investors is studying a bid for Spain's third-biggest bank.

Agencies

(China Daily 06/13/2008 page17)