European Stocks Are Little Changed as Monte Paschi Gains

European stocks were little changed, heading for a third month of gains, as a report showed unemployment in the euro area fell from a record high. U.S. index futures rose, while Asian shares were also little changed.

Kesko Oyj, Finland's biggest publicly traded retailer, rallied 9 percent. Banca Monte dei Paschi di Siena SpA (BMPS) added 2 percent as Italy's third-largest lender set out a plan to return to profit after cutting costs and raising capital as part of its restructuring plan. Speedy Hire Plc sank the most since 2009 after the construction-equipment leasing company said it found evidence of false accounting at one of its units.

The Stoxx Europe 600 Index climbed 0.1 percent to 325.36 at 11:37 a.m. in London, trading near its highest level since May 2008. The gauge has risen 0.9 percent in November. Standard & Poor's 500 Index futures advanced 0.2 percent today following the Thanksgiving holiday yesterday. The U.S. stock market will close early at 1 p.m. New York time. The MSCI Asia Pacific Index increased 0.1 percent.

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"With the short trading day in the U.S. and the Thanksgiving holiday, volume is low and there aren't many impulses for big moves before next week," said Patrick Kraehenbuehl, a portfolio manager at Umblin AG in Zurich. "Sentiment is still very positive, with investors keeping an eye on economic data and many betting on a year-end rally."

The volume of shares changing hands in companies listed on the Stoxx 600 was 20 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.

Unemployment Rate

A Eurostat report showed that euro-area unemployment unexpectedly fell in October. The jobless rate declined to 12.1 percent from 12.2 percent in September. Economists had predicted it would remain at a record high.

S&P raised its outlook for Spain's debt to stable from negative, reducing the likelihood that the ratings company will cut the Mediterranean nation's rating to junk. S&P affirmed Spain at BBB-, its lowest investment grade.

The ratings company raised its score for Cyprus to B- from CCC+. It lowered the Netherlands to AA+ from AAA, citing weaker growth prospects than previously forecast.

Kesko jumped 9 percent to 27.53 euros, its highest price since February 2012. The company said it plans to sell some of its store sites and shopping malls to a real estate investment trust that it will set up in 2014. The trust, which Kesko will partly own, will hold assets in Finland, Sweden and Russia.

Rentokil Initial Plc (RTO) climbed 3.1 percent to 106 pence as Bank of America Corp. upgraded the U.K. pest-control and hygiene-services company to buy from neutral. The brokerage predicted that cash flow will improve in 2014 and 2015.

Speedy Hire

Speedy Hire slumped 15 percent to 54.8 pence. The company said late yesterday that it had found accounting irregularities within its international business, which mostly operates in the Middle East. Steve Corcoran resigned as chief executive officer. He will stay with the company until it finds a successor, according to a statement.

Speedy Hire forecast that the irregularities will reduce pretax profit for the financial year ending March 31 by about 3 million pounds ($4.9 million).

UPM-Kymmene Oyj (UPM1V) fell 3.9 percent to 12.18 euros. UBS AG lowered Europe's second-largest papermaker to sell from neutral. The brokerage said that demand for the company's product will not recover in Europe and that the industry will probably reduce its capacity next year.

TeliaSonera AB dropped 1.8 percent to 53.45 kronor, the most in 12 weeks. Sweden's largest phone company fired Chief Financial Officer Per-Arne Blomquist and three other senior employees as the fallout mounted from an ethics review. The company said in a statement today that its processes when it made acquisitions in former Soviet countries had fallen short of sound business practices.