"Successful investing is going against the momentum and against the things that seem most logical in the present space."

Wednesday, August 22, 2007

U.S. Index Futures, Global Stocks Gain; BHP, E*Trade Advance

By Adria Cimino
Aug. 22 (Bloomberg) -- U.S. stock-index futures rose, following rallies in Europe and Asia, as concern eased that a credit crunch will curb profit growth and takeovers.

TD Ameritrade Holding Corp. and E*Trade Financial Corp. advanced after the Wall Street Journal said they are discussing a merger. Societe Generale SA and Man Group Plc led financial shares higher in Europe. BHP Billiton Ltd. climbed after the world's biggest mining company posted record full-year profit.

Morgan Stanley Capital International's World Index added 0.3 percent to 1,518.37, while Standard & Poor's 500 Index futures increased 8.9 to 1,459.2 at 8:36 a.m. in New York. The MSCI World is headed for a fourth day of gains, the longest winning streak in almost two months, after the Federal Reserve reduced its discount rate last week.

``Sentiment is becoming more positive,'' said Julien Quistrebert, an analyst at Richelieu Finance in Paris, which oversees about $5 billion. ``We're waiting for a gesture from the Fed.''

The Chicago Board Options Exchange Volatility Index has dropped 18 percent since Aug. 16, when it surged to the highest since October 2002. Investors' expectations for price swings in German stocks, as measured by the VDAX Index, declined 13 percent from Aug. 16 when it rose to its highest since June 2006. The VDAX gauges the implied volatility in DAX options.

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