Global Stocks Rise; Schneider, Apple, Mitsubishi UFJ Advance

By Adria Cimino

Oct. 23 (Bloomberg) -- Global stocks and U.S. index futures advanced after better-than-expected earnings and forecasts from Schneider Electric SA, Apple Inc. and China Mobile Ltd. eased concern profit growth is slowing.

Schneider, the world's biggest maker of circuit breakers, rose the most in three months. Apple Inc. of the U.S. surged in Germany after posting earnings that beat analysts' estimates. Lonza Group AG, the largest maker of drug ingredients, climbed after saying it expects full-year earnings to exceed its target. Mitsubishi UFJ Financial Group Inc. and National Australia Bank Ltd. paced gains by banks in Asia.

The Morgan Stanley Capital International World Index climbed 0.8 percent to 1,626.75, while Standard & Poor's 500 Index futures rose 0.5 percent to 1,521.4 at 11:38 a.m. in London.

``The market is going to be driven by earnings and company statements,'' said Mark Webster, senior investment manager at State Street Global Advisors in London. ``Valuations are still attractive. The market will focus on companies with sustainable growth.''

European government bonds declined, ending four days of gains. The dollar retreated from the highest in almost two weeks against the euro. The risk of owning European corporate bonds fell, according to traders of credit-default swaps.

The MSCI Emerging Markets Index rose 2.2 percent for the biggest gain in five weeks.

``Profits and outlooks will be a motor for stocks,'' said Laurent Vallee, a fund manager at Richelieu Finance in Paris, which oversees $5 billion. ``Earnings reports will be closely examined today.''

National Benchmarks

In Europe, the Dow Jones Stoxx 600 Index added 1.3 percent, its first gain in four days. National benchmarks rose in all of the 18 western European markets. The U.K.'s FTSE 100 added 1.5 percent. France's CAC 40 gained 1.1 percent and Germany's DAX increased 0.9 percent.

Japan's Topix index added 0.5 percent to 1,570.55. Hong Kong's Hang Seng Index climbed 3.5 percent. India's key Sensitive Index jumped 5 percent after the country's capital markets regulator dropped a proposed ban on overseas brokerages using offshore derivatives for their own trading.

All other markets open for trading advanced, except in New Zealand, Vietnam and Pakistan. Thailand's markets were closed for a holiday.

Schneider, whose automation controls help bottle Veuve Clicquot champagne and paint cars for PSA Peugeot Citroen, climbed 3.3 percent to 95.5 euros. The company lifted its forecast for full-year sales growth after saying third-quarter revenue advanced 28 percent to 4.47 billion euros ($6.34 billion).

Apple, Lonza

Apple's shares jumped $11.97 to $186.33 in Germany. The company delivered a 67 percent jump in fourth-quarter profit, topping analysts' estimates, on record Macintosh computer sales and growing iPod and iPhone demand.

Lonza soared 4.4 percent to 136.8 francs. The company said it expects full-year earnings to exceed guidance, helped by growth in its biopharmaceutical business. The company's performance this year has been ``strong,'' Lonza said in a presentation on its Web site. Lonza earlier had said operating profit and sales would grow as much as 19 percent and 12 percent, respectively.

Mitsubishi UFJ, Japan's biggest publicly traded lender, rose 1.9 percent to 1,046 yen. National Australia Bank, the country's biggest lender, advanced 1.7 percent to A$41.25.

China Mobile jumped 5.3 percent to a new high of HK$149.70 in Hong Kong after profit was boosted by record customer growth.

ArcelorMittal, Umbro

ArcelorMittal, the world's biggest steelmaker, rallied 2.8 percent to 54.45 euros. HSBC Holdings Plc raised its recommendation on the stock to ``overweight'' from ``underweight'' and lifted its share-price forecast to $95 from $53. The bank also increased profit estimates for the company, saying that ``the current period is favorable for steel prices.''

Umbro Plc surged 14 percent to 188.75 pence. Nike Inc., the world's biggest maker of athletic shoes, agreed to buy Umbro for 285 million pounds ($580 million), gaining the contract to outfit the English soccer team and sell replica jerseys worldwide.

The Nike offer of 193.06 pence per share is 61 percent more than Umbro's closing price on Oct. 17, the day before the company said it was approached by a potential buyer.

Accor SA added 2.5 percent to 65.9 euros. Europe's biggest hotel owner plans to lease back or franchise three quarters of its hotels to improve profitability. The company's operating margin will rise 3 percentage points by 2010, Accor said.

Alfa Laval

Alfa Laval AB rallied 12 percent to 478.5 kronor. The world's largest maker of heat exchangers used to cool liquids said third-quarter profit doubled to 910 million kronor ($140 million), surpassing analysts' estimates, after the company sold more equipment to customers in the energy and food industries.

Debenhams Plc gained 3.9 percent to 107.5 pence. Britain's second-largest department-store company said annual profit rose 81 percent after refurbishments lured shoppers and the retailer reorganized loans to cut borrowing costs.

Bradford & Bingley Plc soared 4.5 percent to 265.5 pence. The U.K.'s largest lender to landlords said it is ``substantially prefunded'' for the second half, easing funding concern sparked by higher credit costs. The company raised about 1.8 billion ($3.7 billion) in the wholesale markets since September, it said.

Inchcape Plc surged 6.8 percent to 477.75 pence. The U.K. chain of global car dealerships said third-quarter sales rose 20 percent after opening stores in Russia and eastern Europe.

Porsche AG climbed 4 percent to 1,706.53 euros after the European Union's highest court ruled that Germany's so-called Volkswagen law is illegal, a ruling that may remove the last hurdle for a takeover of Europe's largest carmaker by Porsche.