BLBG: Europe Stocks Extend Record, Poised for Best Week Since January
European stocks climbed, extending an all-time high and heading for the biggest weekly gain since January.
The Stoxx Europe 600 Index advanced 0.4 percent to 410.58 at 9:47 a.m. in London. It surpassed a record reached in 2000 on Thursday after data showed German industrial production beat forecasts, fueling optimism the euro-area economy is improving.
The benchmark gauge has climbed 3.2 percent in a holiday-shortened week. It has rallied 20 percent this year, with the euro weakening as the European Central Bank started a quantitative-easing program. Similar measures by the Federal Reserve helped U.S. equities more than triple from a 2009 low, including a 30 percent rally in 2013.
“This year will be Europe’s answer to what U.S. equities gave us in 2013,” Peter Garnry, Saxo Bank A/S’s head of equity strategy, said by phone from Hellerup, Denmark. “Companies are facing extremely cheap financing rates, the lowest euro in a decade, low oil prices, QE and an improving economy. If all these positive factors can’t get Europe back on track, then nothing will.”
Among stocks active on corporate news, Shire Plc rallied 4.6 percent after U.S. regulators granted a priority review for Lifitegrast, its experimental treatment for dry-eye disease. The review is an encouraging sign of timely approval, JPMorgan Chase & Co. wrote in a note. A gauge of health-care stocks posted the biggest advance among 19 industry groups.
Carrefour Outlook
Carrefour SA gained 1.5 percent after France’s largest retailer forecast annual profit growth of as much as 6.7 percent and reported first-quarter sales that beat the median analyst estimate. Bollore SA added 2.8 percent after it spent 800 million euros ($849 million) to increase its stake in Vivendi SA to 14.52 percent.
U.K. homebuilders advanced after Jefferies Group LLC said the housing market ahead of a May 7 general election is stronger than expected. Barratt Developments Plc, Taylor Wimpey Plc and Bellway Plc gained more than 2.5 percent as the brokerage upgraded the shares.
Hays Plc tumbled 2.6 percent after saying currency swings may reduce full-year operating profit by about 11 million pounds ($16 million). Givaudan SA declined after reporting a drop in full-year sales and saying the economic environment is challenging.
