European stocks rebounded from a two-day drop as better-than-estimated earnings offset investor concern about the health of the region's economy. U.S. index futures rose after Republicans gained control of the Senate. The Stoxx Europe 600 Index advanced 0.8 percent to 333.46 at 8:10 a.m. in London as all the industry groups on the gauge except commodity companies climbed. Natixis (KN) SA, Marks & Spencer Group Plc and Hannover Re rallied after posting results. The benchmark measure had lost 1.8 percent in the past two days as some corporate earnings missed estimates and the European Commission cut growth forecasts for the region. Standard & Poor's 500 Index futures advanced 0.3 percent today as Republicans made gains in midterm elections, wresting control of the Senate from Democrats, winning crucial governor races and cementing their majority in the House. The MSCI Asia Pacific Index fell 0.7 percent. A private report based on payrolls will probably show American companies hired 220,000 workers last month, the most since June, economists surveyed by Bloomberg project. The ADP Research Institute may give investors clues about the strength of the world's largest economy before the Labor Department's employment report on Nov. 7. Separate data may confirm the euro area services industry grew last month at the same pace as in September. Another release may show retail sales in the region slipped in September by the most this year, according to the median economist projection. ECB Watch Investors also await tomorrow's policy decisions by the European Central Bank. They will weigh ECB President Mario Draghi's speech for hints of further stimulus, including the purchase of government bonds. The ECB began buying covered bonds last month as part of a strategy to revive prices, boost lending and spur growth. Natixis advanced 2.3 percent to 5.43 euros after higher revenue from asset management and insurance helped third-quarter net income rise 10 percent to 281 million euros ($352 million). That beat analysts' prediction of 275 million euros. M&S climbed 8.2 percent to 437.9 pence, its biggest rally since March 2013. The retailer said first-half profit rose to 268 million pounds ($428 million), exceeding the average analyst estimate of 253 million pounds. The company's general merchandise unit will be more profitable this year than previously forecast, M&S said. Hannover Target Hannover Re rose 1.3 percent to 67.40 euros. The reinsurer said third-quarter profit rose to 251 million euros, beating the 209 million-euro average analyst estimate. The company also confirmed its full-year profit target and said net income will climb next year. ING Groep NV added 2.1 percent to 11.45 euros after the largest Dutch lender said it will make the final repayment of state aid on Friday, ending a six-year bailout. ING also posted third-quarter profit that missed analysts' estimates. Banca Monte dei Paschi di Siena SpA added 3.5 percent to 67.3 euro cents as people familiar with the matter said the Italian lender is close to securing underwriters for a share sale to raise as much as 2.5 billion euros. Lafarge SA gained 1.1 percent to 53.27 euros after saying it will slow asset sales in the fourth quarter. The cement maker, which is merging with Swiss rival Holcim, also said growth in emerging markets helped profit meet projections in the third quarter. Source: Bloomberg
