European stocks were little changed, after the Stoxx Europe 600 Index fell the most in almost two weeks, as investors assessed equity valuations before earnings reports.
U.S. stock futures and Asian shares were also little-changed.
Marks & Spencer Group Plc rose 0.7 per cent after saying quarterly revenue at its food unit advanced 1.7 per cent. Commerzbank AG lost 2 per cent after a person with knowledge of the matter said it will probably be the next bank to resolve alleged U.S. sanctions violations.
The Stoxx 600 added less than 0.1 per cent to 344.94 at 8:09 a.m. in London. The equity gauge rose 1.8 per cent last week as U.S. jobs data exceeded economists’ forecasts and commodity producers rallied. Standard & Poor’s 500 Index futures slipped 0.1 pe rcent today. The MSCI Asia Pacific Index lost 0.2 percent.
The Stoxx 600 index traded at 15.5 times the estimated earnings of its members yesterday, near its highest valuation since 2009.
Alcoa Inc. unofficially opens the second-quarter U.S. earnings-reporting season today. Profit at companies in the S&P 500 increased 5 per cent in the three months through June, estimates compiled by Bloomberg show.
Marks & Spencer rose 0.7 per cent to 436 pence. The U.K.’s largest clothing retailer also reported a 12th straight quarterly drop in non-food sales. Same-store sales of general merchandise, a division that mostly comprises apparel, fell 1.5 per cent in the 13 weeks ended 28 June, according to a statement. That compares with the median estimate of analysts surveyed by Bloomberg News for a 1 per cent decline.
Commerzbank Declines
Commerzbank lost 2 per cent to €11.27. Germany’s second-biggest bank may incur penalties of at least $500 million as part of a deferred prosecution agreement with authorities as soon as summer in the U.S., the person said, asking not to be named because the talks are confidential.
Air France-KLM Group slumped 4.3 per cent to 8.99 euros. Europe’s largest airline cut its full-year earnings forecast amid overcapacity on North American and Asian routes, poor demand for freight and the fallout from a dispute with Venezuela. Earnings before interest, tax, depreciation and amortization will reach €2.2 billion ($3 billion) to €2.3 billion this year, compared with a previous target of as much as €2.5 billion.
Bloomberg News edited by ESM
