European stocks were little changed near a 23-month high as investors awaited the European Central Bank to indicate how much of loans under its long-term refinancing operation that banks plan to repay early. U.S. index futures and Asian shares rose.

Banca Monte dei Paschi di Siena jumped 8.2 percent on a report that the Bank of Italy may approve a bailout as soon as tomorrow. STMicroelectronics (STM) NV climbed 4 percent after Exane BNP Paribas upgraded the semiconductor maker. SolarWorld AG (SWV) plunged the most since July 2002 after Germany’s biggest solar- panel maker said it needs to make “serious” adjustments to its debt structure.

The Stoxx Europe 600 Index rose less than 0.1 percent to 289.13 at 9:49 a.m. in London. The benchmark gauge advanced yesterday to the highest level since February 2011 as U.S. jobless claims fell to a five-year low. Standard & Poor’s 500 Index futures gained 0.2 percent today, while the MSCI Asia Pacific Index added 0.3 percent.

“The market market will move higher, it is still undervalued, and any pullback we see as a buying opportunity,” said Kevin Lilley, a fund manager at Old Mutual Asset Managers U.K. in London, which oversees about 4 billion pounds ($6.2 billion). “The LTRO data is a confirmation that there is a recovery going on in the financial markets. And for the banking system the fact that some of the banks can repay the loans means credit has opened up to them.”

The European Central Bank will provide a first indication of how much of its 1 trillion euros ($1.33 trillion) in three- year loans banks plan to repay early. The statement, due at noon in Frankfurt, may show lenders will initially repay 84 billion euros, according to the median of 10 estimates in a Bloomberg survey of economists.

German Sentiment

Stocks erased losses as German business confidence rose for a third month in January, adding to signs that Europe’s largest economy is recovering from a slump at the end of last year. The Ifo institute’s business climate index, based on a survey of 7,000 executives, climbed to 104.2 from 102.4 in December. This month’s number is the highest since June.

A report showed Britain’s economy shrank more than forecast in the fourth quarter. Gross domestic product dropped 0.3 percent from the three months through September, the Office for National Statistics said. That compares with the median estimate in a Bloomberg survey for a decline of 0.1 percent.

In the U.S., a Commerce Department report may show new-home sales increased to a 385,000 annual rate in December, the best showing since April 2010, according to economists.

Bank Bailout

Monte Paschi surged 8.2 percent to 25.25 euro cents, rising for the first time in six days. The Bank of Italy may approve aid to the lender as soon as tomorrow, MF reported without saying where it got the information. Finance Minster Vittorio Grilli will address parliament on the bank next week, the newspaper said.

STMicroelectronics advanced 4 percent to 6.41 euros after Exane raised its recommendation for the semiconductor maker to outperform, similar to a buy rating, saying a partial sale of its wireless-chip venture with Ericsson AB is a most likely scenario. Exane earlier had a neutral rating on the stock.

Boiron SA (BOI) rallied 3.6 percent to 29.75 euros after the French maker of homeopathic remedies said it expects 2012 operating income to be “significantly” higher than in 2011. Full-year revenue climbed 7.5 percent to 566.3 million euros.

SolarWorld Debt

SolarWorld plunged 25 percent to 1.19 euros after the company said late yesterday that a review of its earnings and financial planning by external advisers prompted management to take action to restructure its debt.

SolarWorld reported net debt of 805.2 million euros as of the end of September. The company has 400 million euros in bonds and loans due in 2016 and another 400 million due in 2017, according to data compiled by Bloomberg.

Bankinter SA lost 2.1 percent to 4.01 euros after Credit Agricole SA sold 5.2 percent stake in the Spanish lender. Citigroup Inc. and Credit Agricole carried out the sale of 29.3 million shares at 3.95 euros each. They were offered at 3.85 to 4 euros apiece, according to the terms obtained by Bloomberg News. Credit Agricole has also agreed to a 180-day lock-in for the remaining 9.9 percent it owns in Bankinter.

Nokia Oyj dropped 5 percent to 3.13 euros, extending yesterday’s 5.5 percent selloff. Danske Bank A/S lowered its recommendation for the mobile-phone maker to sell from hold, saying the company’s low-end phone business has begun to deteriorate with demand falling quickly.

Separately, research from Strategy Analytics shows Samsung Electronics Co. and Apple Inc. held half the global smartphone market last year as shipments worldwide gained 43 percent.

Salzgitter AG fell 2.2 percent to 36.04 euros after analysts at Commerzbank AG and UBS AG downgraded Germany’s second-largest steelmaker to reduce and sell respectively.

UBS analyst Carsten Riek said the market is pricing in an unrealistic margin recovery and the risk to 2013 earnings merits a 58 percent cut in the bank’s pretax-profit estimate to 53 million euros.

 

Bloomberg