Global stocks advance before Italian debt auction

European stocks were little changed, after yesterday's selloff, before Italy auctions as much as $5 billion worth of long-term debt. U.S. Index futures were also little changed, while Asian shares fell.

Kabel Deutschland Holding AG fell 4.4 percent as people familiar with the matter said that Vodafone Group Plc (VOD) has put on hold plans to approach the German company about a takeover. European Aeronautic, Defence & Space Co. rallied the most in more than two months after the parent company of Airbus SAS posted earnings that beat analysts' forecasts. Bouygues (EN) SA jumped 6.1 percent after the French builder reported full-year profit that topped forecasts.

The Stoxx Europe 600 Index fell 0.1 percent to 284.36 at 9:47 a.m. in London, paring the gauge's advance this year to 1.7 percent. Standard & Poor's 500 Index futures dropped less than 0.1 percent today and the MSCI Asia Pacific Index lost 0.3 percent.

"We remain overweight on equities," Andrew Garthwaite, a global equity strategist at Credit Suisse Group AG in London, wrote in a report. "Our tactical indicators for equities have been consistent with a period of consolidation, but we would use this as a buying opportunity. Global earnings revisions have recently started to improve, in line with stronger economic momentum."

The Stoxx 600 slid 1.3 percent yesterday after Italy's inconclusive parliamentary election sent the country's borrowing costs to the highest level in four months, renewing concern that the euro area's debt crisis may deepen.

Italy will test markets today as it seeks to sell as much as 4 billion euros ($5 billion) of a new 10-year bond and 2.5 billion euros of a 5-year benchmark note. In the US, the S&P 500 rose 0.6 percent amid better-than- estimated housing and consumer-confidence data and as Federal Reserve Chairman Ben S. Bernanke dismissed concern that record easing risks sparking inflation or fueling asset price bubbles.

As many as 24 companies on Europe's Stoxx 600 are scheduled to report results today, according to data compiled by Bloomberg. Of those that have posted earnings since January 8, 51 percent have beaten analysts' estimates, while 62 percent have topped revenue forecasts, the data show.

Vodafone increased 1.5 percent to 164.25 pence after the company was said to have put on hold plans to approach Kabel about a takeover bid after leaks of a potential offer complicated internal discussions.

Vodafone, which had intended to contact Kabel Deutschland after the cable provider's earnings report last week, no longer has a timeframe for a possible approach, according to three people familiar with the matter who asked not to be identified because the deliberations are confidential.

EADS climbed 5.4 percent to 36.74 euros after reporting a 68 percent rise in full-year earnings before interest, taxes and one-time items to 3 billion euros, beating the average analyst estimate of 2.57 billion euros.

The company also forecast operating profit will rise to 3.5 billion euros this year as its Airbus division lifts output and demand for commercial helicopters rebounds.

Bouygues rallied 1.19 euros to 20.58 euros. France's second-largest building company reported a 41 percent drop in 2012 profit to 633 million euros as its phone unit suffered from competition. That still beat the average analyst estimate of 584 million euros.

Swiss Life Holding AG jumped 5 percent to 146.70 Swiss francs. Switzerland's biggest life insurer reported a second- half loss of 268 million francs ($288 million) after posting a writedown on its German brokerage AWD Holding AG. The loss was narrower than the average analyst projection of 300 million francs.