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BLBG: European Stocks Extend Best Quarter Since 2009 on Central Banks
 
(Bloomberg) -- European stocks rose, pushing towards their biggest quarterly rally since 2009, amid optimism central banks will continue to support global growth.
The Stoxx Europe 600 Index gained 1.1 percent to 399.98 at 8:55 a.m. in London. Health-care companies helped push the equity benchmark up 0.3 percent on Friday, trimming its worst weekly loss of the year. The gauge is up 17 percent this year.
U.S. stocks rose late Friday as Federal Reserve Chair Janet Yellen said she expects the central bank to raise interest rates this year, and that subsequent increases will be gradual without following a predictable path. China’s central bank governor said the government can do more to support growth in the world’s second-largest economy.
“Comments from Yellen as well as the Bank of China are driving equity markets higher again,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit in Hellerup, Denmark. “We have an enormously accommodative monetary policy around the world just as the global economy is strengthening. Equity markets still look pretty healthy even after such a strong quarter. Whatever correction we had last week has proven to be very short-lived.”
Investors are looking to Greece for any details on efforts to secure more funds and avoid fiscal collapse. Prime Minister Alexis Tsipras will discuss ongoing talks with creditors on the country’s proposed reforms required for further aid, a Greek government official told reporters Sunday. The discussion will begin at 8 p.m. Athens time.
European Data
Investors will also watch a final report on euro-area consumer confidence, which economists forecast to improve in March. Preliminary German inflation data will show a pickup in prices this month, according to estimates.
In the U.S., data on Monday will show personal incomes rose 0.3 percent in February, according to economists surveyed by Bloomberg, while spending probably advanced by 0.2 percent. Standard & Poor’s 500 Index futures added 0.8 percent.
Health-care stocks contributed the most to the Stoxx 600’s advance. Novartis AG climbed 1.3 percent after saying it entered into a multi-year research-and-development collaboration with Aduro Biotech Inc. and also bought a stake in the company. Roche Holding AG also gained 1.3 percent.
Switzerland’s Dufry AG rose 4.5 percent after agreeing to buy a majority stake in Italian airport retailer World Duty Free SpA for 1.3 billion euros ($1.4 billion) to expand globally.
Holcim Ltd. added 0.3 percent and Lafarge SA lost 1.9 percent. Holcim’s second-biggest shareholder plans to vote against the Swiss company’s merger with Lafarge, even after the cement makers last week agreed on new terms and management changes to placate investors, according to a person familiar with the matter.
A gauge of energy shares was little changed, for the worst performance of the 19 industry groups on the Stoxx 600. Oil fell for a second day as Iranian and Western diplomats continued talks on a nuclear deal that may lead to the Islamic Republic boosting crude exports, exacerbating a global supply glut.
To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Alan Soughley
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