BLBG: European Stocks Advance Amid Deal Activity, ECB Stimulus Bets
European stocks rose, snapping two days of losses, amid an increase in mergers-and-acquisitions activity, and as investors weighed stimulus prospects before the European Central Bank meets this week.
The Stoxx Europe 600 Index added 0.4 percent to 346.95 at 8:07 a.m. in London. The benchmark gauge lost 0.5 percent yesterday as a decline in oil prices, and factory data in China and Europe stoked concern about slowing inflation and global growth. The gauge gained 3.1 percent last month as ECB President Mario Draghi said the lender may broaden its asset-buying program to include government bonds, while central banks in Japan and China boosted stimulus measures.
The ECB’s next policy meeting is on Dec. 4. More than half the economists in a Bloomberg survey expect the central bank to buy government bonds if it expands its stimulus program.
Standard & Poor’s 500 Index futures advanced 0.2 percent today, while the MSCI Asia Pacific Index increased 0.4 percent.
A gauge of oil and gas shares rose 1.9 percent for the best performance among 19 industry groups in the Stoxx 600. Afren Plc surged 6.1 percent and Genel Energy Plc gained 5.4 percent. Oil resumed a decline after yesterday rebounding from a five-year low. Energy stocks have tumbled as the Organization of Petroleum Exporting Countries signaled last week it would take no action to ease a global glut.
Among stocks moving on deal activity, Friends Life Group Ltd. rose 1.9 percent after Aviva Plc agreed to buy it for about 5.6 billion pounds ($8.8 billion) in stock in the U.K. insurance industry’s biggest takeover in 15 years. Aviva, which is offering 394 pence in stock for each Friends Life share, climbed 1.4 percent.
Neopost SA slipped 13 percent after saying organic revenue this year will be close to stagnant, compared with a previous target of 1 percent to 3 percent growth. The manufacturer of mailing and shipping equipment cited third-quarter results and difficult conditions in France.
To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Namitha Jagadeesh, Alan Soughley
