European stock futures advanced on optimism Greece will stay in the euro after projections showed pro-bailout parties won enough seats in yesterday’s election to form a government with a workable majority. U.S. index futures and Asian stocks also rose.
BHP Billiton Plc, the world’s biggest mining company, rallied in Australian trading. Nokia Oyj (NOK1V) may climb after ABG Sundal advised buying the mobile-phone maker’s shares.
Futures on the Euro Stoxx 50 Index, a benchmark for the euro area, jumped 1.8 percent to 2,204 at 7:06 a.m. in London. Contracts on the U.K.’s FTSE 100 Index expiring in September increased 0.9 percent. Futures on the Standard & Poor’s 500 Index climbed 0.4 percent, while the MSCI Asia Pacific Index increased 1.5 percent.
“The Greek election result signaled a green light for the resumption of buying in higher-yielding assets,” Tim Waterer, senior trader at CMC Markets in Sydney, wrote. “A messy Greek exit is just something that financial markets do not want to deal with right now, so traders had no hesitation in rejoicing the pro-bailout party win.”
The benchmark Stoxx Europe 600 Index has dropped 11 percent from its peak on March 16 and more than $5 trillion has been erased from global equities on concern that the euro area’s sovereign-debt crisis has triggered a slowdown in global economic growth.
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