European stocks, US futures rise

European stocks advanced for a second day as retailers rallied and investor confidence in Germany unexpectedly improved. US index futures and Asian shares rose.

PPR SA, owner of the Gucci luxury-goods brand, and Home Retail Group Plc jumped more than 4 percent. Q-Cells SE sank 19 percent as the world's largest maker of solar cells reduced its profit forecasts for this year and 2009.

Europe's Dow Jones Stoxx 600 Index added 1 percent to 204.63 at 10:42 am in London after dropping as much as 1.6 percent earlier. Futures on the Standard & Poor's 500 Index expiring this month gained 0.4 percent, while the MSCI Asia Pacific Index increased 0.8 percent.