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U.S. Stock-Index Futures Advance; Citigroup, Barrick Gold Gain

By Lynn Thomasson and Daniela Silberstein

Nov. 9 (Bloomberg) -- U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index may rise for a sixth day, after the Group of 20 nations agreed to maintain stimulus efforts and metals prices rallied.

Citigroup Inc. and Bank of America Corp. climbed at least 1.7 percent in pre-market trading in New York. Barrick Gold Corp., the world’s largest bullion producer, increased 2.1 percent in Germany after the precious metal rose to a record.

Futures on the S&P 500 expiring in December advanced 0.9 percent to 1,076 at 8:44 a.m. in New York. Dow Jones Industrial Average futures added 0.9 percent to 10,066 and Nasdaq-100 Index futures rose 1 percent to 1,746.25. European stocks gained as German industrial output rose more than economists forecast in September

U.S. stocks climbed last week, halting a two-week retreat, after worker productivity, manufacturing and home sales beat economists’ projections and Warren Buffett’s Berkshire Hathatway Inc. made its biggest purchase. The global rally in equities lost pace in October on concern the rebound has gone too far relative to the prospects for economic growth. The S&P 500 has surged 58 percent from a 12-year low in March even after dropping 2 percent last month.

“All factors that drove the upward trend over the last months are still here, overall we are seeing stabilization,” said Rudolf Buxtorf, who manages about $114 at RBS Coutts Bank in Zurich. “As we saw over the weekend, the G-20 sees no alternative to maintaining stimuli.”

Low Interest Rates

U.K. Chancellor of the Exchequer Alistair Darling, hosting a meeting of finance ministers from G-20 nations, said his colleagues decided to keep supporting their economies. The G-20 agreed to keep interest rates low and maintain record budget deficits until recoveries take hold. The G-20 split on whether to introduce a so-called Tobin tax on financial trading as part of a broader strategy to ensure the global economy’s expansion is less crisis-prone.

Citigroup, the recipient of a $45 billion government infusion, advanced 1.7 percent to $4.13 in early New York trading. Bank of America, the largest U.S. lender by assets, gained 2 percent to $15.35.

Barrick Gold rose 2.1 percent to $42.50. Newmont Mining Corp., the largest U.S. gold producer, increased 2 percent to $50. Gold in London surged to a record $1,109.50 an ounce as a weakening dollar prompted investors to increase bullion holdings as a store of value.

Freeport-McMoRan Gains

Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, increased 2.3 percent to $81.41 in New York as the metal gained for the first time in three days.

Altria Group Inc. added 1.7 percent to $18.85. The largest U.S. tobacco company may rise to $27 if the company improves earnings by cutting costs and raising prices, Barron’s reported, citing David Adelman, an analyst at Morgan Stanley in New York.

Earnings per share have topped analysts’ estimates at 83 percent of the 424 companies in the S&P 500 that have reported quarterly results since Oct. 7, according to data compiled by Bloomberg.

UnitedHealth Group Inc., the biggest U.S. insurer by sales, slumped 1.7 percent to $28.17. Aetna Inc., the third-largest U.S. health insurer, slipped 1 percent to $28.87. The U.S. House on Nov. 7 approved the most far-reaching changes to the nation’s health-care system in four decades, voting to require all American to get coverage and to subject insurers to new restrictions and new competition from a government program. The measure would cost more than $1 trillion over 10 years.

Las Vegas Sands Corp. climbed 3.3 percent to $15.86. The casino company controlled by billionaire Sheldon Adelson received commitments for $1.45 billion of bank financing to help restart a stalled Macau project.

Rate Increases

Stocks around the world are falling at the fastest rate since the worst of the credit crisis on concern central banks will start raising rates, a signal that triggered the biggest rallies over the past three decades.

Benchmark indexes from New York to Tokyo to Frankfurt have lost an average of 4.4 percent since Oct. 19 on speculation policy makers will curtail stimulus measures before the global economy revives. History shows stocks have climbed 92 percent of the time in the six months before government borrowing costs began the biggest increases, data compiled by Bloomberg show.

To contact the reporters on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net; Lynn Thomasson in New York at lthomasson@bloomberg.net.

Last Updated: November 9, 2009 08:47 EST

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