Most European Shares Advance; PGS, Heineken Gain, Siemens Falls

Most European shares Advance; PGS, Heineken profit, Siemens Falls
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By Adria Cimino
Dec. 3 (Bloomberg) - European shares rose more like Bank of America Corp. said it will pay 45 billion U.S. dollars in bailout funds from the government, overshadowing an unexpected contraction in U.S. service industries.
Petroleum Geo-Services ASA rose 8.8 percent after saying it will earn as much as $ 20 million on the sale of an earthquake. Heineken NV, the third largest in the world of beer rose 3.3 percent as CA Cheuvreux recommended actions. Siemens AG, an engineering firm is Europe's largest, sank 5.2 percent after posting its first quarterly loss in a year.
The Dow Jones Stoxx 600 fell 0.2 percent to 246.4 as of 4:38 pm in London, six cattle populations for every five that fell. The indicator has met 24 per cent in 2009 on signs in public spending and record low interest rates are helping to lift the economy out of recession. European Central policymakers Bank today left the benchmark interest rate by 1 percent, as predicted by all 54 economists in a Bloomberg News survey.
"To see a large bank to pay is a positive factor for the market," said Jerome Forneris, who helps manage 12 billion U.S. dollars at Banque Martin Maurel in Marseille. "Stocks do not go too high. There is still uncertainty."
Bank of America, the country's largest lender, said it would pay using Troubled Asset Relief Program funds of 26.2 billion U.S. dollars of "excess liquidity", and 18.8 billion U.S. dollars from the sale of securities .
U. S. Economy
The Institute for Supply Management's index of nonmanufacturing businesses fell to 48.7 in November, non-economists forecast a median reading of 51.5. Fifty is the dividing line between expansion and contraction.
U.S. Initial claims for unemployment fell to 457,000 in the week ended Nov. 28, the lowest since September 2008, a Labor Department report showed. Economists had forecast claims to rise. The Federal Reserve said that the economy expanded and improved "modestly" from October to mid November in its Beige Book survey of business yesterday afternoon.
The National benchmarks gained in 8 of the 18 western European markets. The German DAX and Britain's FTSE 100 dropped 0.2 percent. The French CAC 40 rose 0.1 percent.
The Stoxx 600 Index may climb to 300 by the end of next year amid "above trend" growth in the global economy, according to Goldman Sachs Group Inc., an environment of low interest rates will support markets values and company profits can grow 38 percent excluding exceptional items, next year and 28 per cent in 2011, strategists, led by Peter Oppenheimer wrote in a report dated yesterday.
Strategists at Societe Generale
The strategists at Societe Generale SA forecast to 290 will Stoxx 600 in September and ends in 2010 280.
Petroleum Geo-Services, the third largest in the world - inspector of petroleum, rose 8.8 percent to 66.25 crowns. The company said the Houston-based Geokinetics Inc. agreed to buy its land seismic division for cash and shares worth about $ 210 million.
Heineken rose 3.3 percent to € 33.04 after Cheuvreux raised its rating on the stock to "outperform" from "underweight."
Siemens fell 5.2 percent to € 64.08 after reporting a quarterly loss of depreciation in the company in the telephone network with Nokia Oyj. The net loss in the fiscal fourth quarter fell to 1.13 billion euros (1.7 billion) from a loss of 2.47 million last year, Siemens said.
The basic-resources producers led declines on the Stoxx 600. Rio Tinto Group, the third of the world's biggest miner, fell 3.3 percent to 3183.5 pence. Xstrata Plc, which said today it will increase capital spending by 89 percent to 6.8 billion U.S. dollars next year, fell 3.8 percent to 1,104 pence. Anglo American Plc fell 2.6 percent at 2,650 pence.
Metals Drop
Nickel, lead, tin and zinc fell on the London Metal Exchange. Gold fell after a rally to a record $ 1227.50 an ounce, prompted some investors to sell the precious metal.
Of Ireland Life & Permanent Plc, the largest mortgage lender in Ireland, brought to 6.1 percent at 3.50 euros on speculation that Axa SA, the France's largest insurer, may bid for the company.
"There is a rumor of a bid for Irish Axa life," said Oliver Gilvarry, head of research at Dolmen Securities in Dublin. A spokesman for Irish Life could not immediately be reached for comment.
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