Stocks gain with euro on earnings as S&P 500 futures pare drop

European stocks rose and the euro strengthened after results from BP Plc and Deutsche Bank AG beat analyst estimates. U.S. equity-index futures pared declines as Hurricane Sandy shut equity trading for the longest weather- related interruption since 1888.

The Stoxx Europe 600 Index climbed 0.6 percent at 10:15 a.m. in London. Standard & Poor’s 500 Index futures slipped 0.2 percent from the Oct. 26 close, having tumbled as much as 1 percent earlier today. The euro appreciated 0.4 percent to $1.2957. The yen rallied after the Bank of Japan’s second round of stimulus disappointed some investors. Italy’s 10-year bonds stayed higher after a debt sale. Gasoline dropped 0.7 percent.

BP, Europe’s second-biggest oil company, raised its dividend after earnings topped forecasts, and Deutsche Bank, Germany’s largest lender, said profit unexpectedly rose as investment-banking revenue exceeded targets. U.S. stock trading was canceled for a second day, joining bond markets, as the Atlantic Ocean’s biggest-ever tropical storm headed inland.

“Once again, we’re seeing good resilience of European companies,” Jacques Porta, who helps oversee $627 million as a fund manager at Ofi Patrimoine in Paris, said in an interview. “Expectations were so negative that there haven’t been many bad surprises.”

UBS Target

The Stoxx 600 climbed for the fourth time in five days as four shares rose for every one that fell. BP gained 4.6 percent, the biggest jump in almost four months, and Deutsche Bank advanced 3.4 percent. UBS AG, Switzerland’s biggest bank, rallied 5 percent after raising a profitability goal.

Danske Bank A/S fell 4.3 percent after unveiling plans to sell new shares. Swedish Match AB sank 7.5 percent as the snuff maker posted income that trailed estimates.

The number of shares changing hands in Stoxx 600 companies was 28 percent less than the 30-day average, according to data compiled by Bloomberg.

A benchmark gauge of European corporate credit risk snapped eight days of increases. The Markit iTraxx Crossover index of credit-default swaps linked to 50 mostly junk-rated European companies fell 9.5 basis points to 535 basis points, the first decline since Oct. 17.

Apple Inc. slipped 0.9 percent in German trading from the Oct. 26 close as the maker of the iPhone said mobile software head Scott Forstall and retail chief John Browett will leave.

A report at 9 a.m. New York time may show U.S. home prices climbed in August. The S&P/Case-Shiller index of property values in 20 cities increased 1.9 percent from a year earlier, according to the median forecast of 25 economists in a Bloomberg survey.

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