European Stocks Rise as Fed Taper Signals U.S. Recovery

European stocks rallied the most in 3 1/2 months as the Federal Reserve’s decision to slow the pace of its stimulus boosted investor confidence that the U.S. economic recovery is on course.

Saab AB surged the most in at least 15 years after winning a $4.5 billion order to supply 36 jet fighters to Brazil’s air force. Amadeus IT Holding SA jumped to a record after the travel-reservations company said its $500 million purchase of NMTI Holdings Inc. will boost 2013 results. Algeta ASA also climbed to a record after Bayer AG agreed to acquire the drugmaker at an increased offer price.