By Marco Bertacche
Nov. 20 (Bloomberg) -- European stock-index futures advanced on speculation yesterday's declines were overdone.
Technology companies including Infineon Technologies AG and STMicroelectronics NV may rise after Hewlett-Packard Co. of the U.S. forecast sales and profit that beat analysts' estimates. J Sainsbury Plc, the U.K.'s third-largest supermarket chain, will probably gain after Sanford C. Bernstein & Co. recommended buying the stock following a retreat this month.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the nations using the euro, added 26, or 0.6 percent, to 4,269 at 7:44 a.m. in London. The U.K.'s FTSE 100 Index may climb 34, according to Cantor Index, a betting firm.
European stocks fell the most in three months yesterday. The Dow Jones Stoxx 600 Index has retreated 8.7 percent this month on increasing concern that losses tied to U.S. subprime mortgages will spill over to the broader economy.
``It is now looking as if the selloff may have been a little overdone,'' said Matt Buckland, a trader at CMC Markets in London. ``We're currently expecting to see some gains on the main European indices.''
The relative strength index on the Stoxx 600 closed yesterday at 26.5. A reading below 30 may indicate the index is poised to rise, according to technical analysts.
The U.S. Federal Reserve is scheduled to issue minutes from its Oct. 31 meeting today after the close of European trading.
``Any suggestion that further rate cuts from the Federal Reserve are imminent may see equity markets buoyed,'' Buckland said.
Sainsbury, Infineon
Sainsbury may gain. Bernstein analysts raised their recommendation on the shares to ``outperform'' from ``market perform.''
The stock's decline since a Qatar-backed fund dropped its takeover bid was ``an over-reaction and creates a compelling entry point for investors,'' analysts Christopher Hogbin and Niamh McSherry wrote in a note to clients today.
Shares of London-based Sainsbury have dropped 25 percent since the close on Nov. 2.
STMicroelectronics, Europe's largest semiconductor maker, and Infineon, the second-biggest, may advance.
Hewlett-Packard said yesterday that profit this quarter will rise to 80 cents a share on sales of $27.4 billion to $27.5 billion. Analysts had estimated earnings of 78 cents and revenue of $27 billion, according to a Bloomberg survey. The company also said it will buy back as much as $8 billion in shares.
Shell, Total
Royal Dutch Shell Plc, Europe's biggest oil company, and Total SA, the region's biggest refiner, may advance after UBS AG raised its price estimates on the shares, citing increased forecasts for oil prices.
UBS raised its estimate for Shell 6.5 percent to 2450 pence, and for Total 4.5 percent to 70 euros.
The brokerage lifted its forecasts for oil prices to average $71 a barrel this year and $74 in each of the following two years. UBS also upgraded shares of BG Group Plc, Repsol YPF SA and StatoilHydro ASA.
EasyJet Plc, Europe's second-biggest discount airline, and Air Berlin Plc, the region's third-largest, may move after reporting earnings.
Luton, England-based EasyJet boosted full-year profit 62 percent to 152.3 million pounds ($313 million) after it trimmed costs and lured business travelers. Analysts had predicted a profit of 150.7 million pounds.
Air Berlin said third-quarter jumped 19 percent to 60.8 million euros ($89.2 million). That beat the 43 million-euro median estimate of seven analysts surveyed by Bloomberg News. Sales rose 7.2 percent to 857.6 million euros.
ICAP, Vodafone
ICAP Plc, the world's largest broker of transactions between banks, may move. First-half profit increased 34 percent to 80.1 million pounds after slumping credit markets drove record trading in currencies, stocks, bonds and their derivatives. Revenue rose 15 percent to 626.2 million pounds.
Vodafone Group Plc, the world's largest mobile-phone company, may advance after Deutsche Bank AG raised its price estimate on the stock 16 percent to 215 pence.
Freenet AG may move. The German mobile-phone and Internet company that's put itself up for sale said talks with United Internet AG about a possible partnership ended.
Negotiations with United Internet, Germany's second-largest Web access provider, on a ``strategic partnership have been terminated,'' Buedelsdorf-based Freenet said in a statement late yesterday.
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