European stocks rose for a third day, the longest winning streak in five weeks, as Moody’s Investors Service kept its investment-grade debt rating on Spain and U.S. new-home construction surged to a four-year high.

Moody’s kept an investment-grade credit rating on Spain late yesterday, citing a reduction in the risk of losing market access because of the ECB’s willingness to buy the nation’s debt.

New-home construction in the U.S. surged in September to the highest level in four years. Starts jumped 15 percent to an 872,000 annual rate last month, the most since July 2008 and exceeding all forecasts of economists, Commerce Department figures showed today. The median estimate of 81 economists surveyed called for a reading of 770,000.

In the U.K., jobless claims unexpectedly fell in September and a wider measure of unemployment dropped to the lowest rate in more than a year as the London Olympics helped push employment to a record.

National benchmark indexes rose in 16 of the 18 western European markets. The U.K.’s FTSE 100 (UKX) gained 0.7 percent, Germany’s DAX increased 0.3 percent and France’s CAC 40 climbed 0.8 percent. Spain’s IBEX 35 surged 2.4 percent.

Waertsilae soared 8.1 percent to 29.02 euros in Helsinki, the biggest increase since November. The company reported third- quarter earnings that exceeded estimates and boosted its full- year sales-growth forecast.

Peugeot climbed 4.1 percent to 6.03 euros. Banks may delay the repayment of 4 billion euros ($5.3 billion) in loans from Peugeot’s credit division, Banque PSA Finance, Le Figaro reported, without saying where it got the information. The automaker is examining funding options for the unit, said Jean- Baptiste Mounier, a spokesman for Peugeot.

Danone dropped 3 percent to 47.33 euros, the largest decrease since Aug. 2. The world’s biggest yogurt maker reported third-quarter revenue growth that missed analysts’ estimates as sales of dairy products in Spain and Italy fell. Revenue adjusted for acquisitions, divestments and currency swings rose 5 percent, the Paris-based company said, trailing the 6.1 percent average of 15 forecasts.

ASML Holding NV dropped 5.3 percent to 39.15 euros as Europe’s biggest semiconductor-equipment maker forecast fourth- quarter sales of about 1 billion euros, trailing estimates of 1.16 billion euros. The company’s gross-margin outlook was 41 percent, compared with a 42.6 percent estimate. Separately, ASML agreed to buy Cymer Inc. for 1.95 billion euros.

TeliaSonera AB , Sweden’s biggest phone company, slipped 1.6 percent to 45.40 kronor after it reported third-quarter earnings that missed analysts’ projections because of slowing sales

U.S. stock futures are mixed  as new-home construction surged to the highest level in four years and investors weighed corporate earnings.

Global Stocks:

Nikkei  8,806.55 +105.24 +1.21%
Hang Seng 21,416.64 +209.57 +0.99%
Shanghai Composite 2,105.62 +6.81 +0.32%
FTSE  5,903.27 +32.73 +0.56%
CAC  3,512.5 +11.56 +0.33%
DAX 7,386.09 +9.82 +0.13%
Crude oil $92.64 +0,60%
Gold $1746.70 0.02%

Cantor Fitzgerald downgrades CSCO to Hold from Buy and lowers their tgt to $19.50 from $20.50
FBR Capital raises their GS tgt to $145 from $130
Societe Generale downgrades IBM from Hold to Sell

Markets are waiting for the summit of EU leaders, which will address the issue Banking Association, but at the moment it was announced that the Swedish Prime Minister Fredrik Reinfeldt during a meeting with German Chancellor Angela Merkel has made it clear to her and the whole of Europe that his country is ready in the EU banking union on terms offered by the European Commission, according to Reuters.

Greece begins large-scale privatization of state property, which can improve its solvency.

Rating agency Moody's confirmed the long term rating of Spain at Baa3, the rating outlook is negative, the agency said on its website.

Short-term rating remained at Prime-3. In October, Standard & Poor downgraded the rating of Spain by two notches, short term - on one level.

Of macroeconomic data should pay attention to the amount of construction in the Eurozone. In August year on year index decreased by 5.5%, while in the month rose by 0.7%.

At the moment:

FTSE 100 5,891.17 +20.63 +0.35%

CAC 40 3,510.24 +9.30 +0.27%

DAX 7,391.14 +14.87 +0.20%

ASML Holding NV shares fell by 2.9% due to a decrease in the forecast of the demand for semiconductors in Europe. Danone fell to 4-month level, due to the fact that the company's profit was below forecasts. Peugeot Citroen gained 2.4% in relation to the information that the French government may credit the automaker.

Asian stocks advanced, with the regional benchmark index headed for the biggest two-day gain in a month, after U.S. industrial production beat estimates and Spain retained its investment-grade credit rating from Moody’s Investors Service.

Nikkei 225 8,806.55 +105.24 +1.21%

S&P/ASX 200 4,528.2 +36.70 +0.82%

Shanghai Composite 2,105.89 +7.08 +0.34%

Mobile-phone maker LG Electronics Inc., which gets about 45 percent of its sales from North America and Europe, rose 2.5 percent in Seoul.

Fujikon Industrial Holdings Ltd., which manufactures electronic products, surged 9.8 percent in Hong Kong after saying it expects first-half profit to rise.

Asian stocks rose, with the regional benchmark index headed for the biggest gain in two weeks, as exporters advanced after the U.S. reported better-than-expected retail sales. Asian banks followed gains among U.S. banks after Citigroup unexpectedly reported a third-quarter profit and a surge in bond-trading revenue. Financial shares accounted for 28 percent of the advance in the MSCI Asia Pacific Index today.

Nikkei 225 8,701.31 +123.38 +1.44%

S&P/ASX 200 4,491.5 +8.07 +0.18%

Shanghai Composite 2,095.19 -3.51 -0.17%

Samsung Electronics Co., which gets a fifth of its sales in Americas, rose 2.3 percent in Seoul.

Mizuho Financial Group Inc., Japan’s third-largest bank by market value, gained 1.6 percent, pacing gains among lenders after Citigroup Inc.’s profit beat estimates.

Softbank Corp. jumped 9.6 percent after Japan’s third-largest mobile-phone company agreed to acquire 70 percent of Sprint Nextel Corp. for $20.1 billion.

Change % Change Last

Nikkei 225 8,701.31 +123.38 +1.44%

S&P/ASX 200 4,491.5 +8.07 +0.18%

Shanghai Composite 2,095.19 -3.51 -0.17%

FTSE 100 5,870.54 +64.93 +1.12%

CAC 40 3,500.94 +80.66 +2.36%

DAX 7,376.27 +115.02 +1.58%

Dow 13,552 +128 +0.95%

Nasdaq 3,101 +37 +1.20%

S&P 500 1,455 +15 +1.03%