July 14 (Bloomberg) -- European stocks climbed, after the Stoxx Europe 600 Index posted its biggest weekly drop since March, as Shire Plc and Kuehne & Nagel International AG gained.
Shire advanced after saying it is willing to recommend an offer from AbbVie Inc. Kuehne & Nagel rose the most in three months after reporting earnings that beat analyst forecasts. Sports Direct International Plc increased 3.6 percent after saying it will expand into Australia and New Zealand. Banco Espirito Santo SA dropped 7.5 percent after appointing a chief executive officer.
The Stoxx 600 added 0.9 percent to 339.79 at the close of trading. The equity measure fell 3.2 percent last week as investors weighed the troubles of Portuguese banks and considered valuations near their highest levels since 2009.
“There is a moderate re-risking in the market today,” Michael Ingram, a market strategist at BGC Brokers LP in London, said by phone. “Stocks took a beating last week, but today there seems to be a bit more confidence that it was specific rather than systemic.”
National benchmark indexes rose in all 18 western European markets. France’s CAC 40 gained 0.8 percent, Germany’s DAX added 1.2 percent, and the U.K.’s FTSE 100 climbed 0.8 percent.
The volume of shares changing hands in Stoxx 600-listed companies was 14 percent lower than the 30-day average, according to data compiled by Bloomberg.
European Central Bank President Mario Draghi may outline further details on plans for cheap funding for the region’s lenders when he addresses lawmakers in Strasbourg after the close of markets. Investors are also waiting to hear Federal Reserve Chair Janet Yellen’s testimony to Congress later this week. China will report second-quarter economic-growth figures on July 16.
Euro-zone industrial production contracted 1.1 percent in May from the previous month, data showed today. Economists surveyed by Bloomberg News had forecast a decline of 1.2 percent. Output increased a revised 0.7 percent in April.
All of the 19 industry groups in the Stoxx 600 rose, with chemical-industry companies and banks leading gains.
Shire climbed 0.7 percent 4,903 pence, after earlier adding as much as 3.6 percent. The drugmaker said it has indicated to AbbVie that it is willing to recommend the U.S. company’s revised takeover offer of 53.20 pounds ($91.07) a share subject to the satisfactory resolution of other terms of the bid.
Kuehne & Nagel rose 4.5 percent to 121.80 Swiss francs. The world’s biggest sea-freight forwarder said second-quarter earnings before interest and taxes increased 4.6 percent to 206 million francs ($231 million). The average analyst estimate compiled by Bloomberg was for Ebit of 202 million francs.
SEB AB climbed 1.2 percent to 90.70 kronor. The Stockholm-based bank said second-quarter net income advanced to 4.17 billion kronor ($614 million). That beat the average 4 billion-krona estimate of analysts surveyed by Bloomberg.
Tesco Plc increased 2.3 percent to 284.5 pence. Cantor Fitzgerald LP raised its recommendation on the U.K.’s biggest supermarket owner to buy from sell, citing a reorganization of its operations, and growth in its online and convenience sales.
Sports Direct advanced 3.6 percent to 723 pence. The U.K.’s largest sporting-goods retailer will open stores and online services in Australia and New Zealand through a collaboration with MySale Group Plc’s OzSale.com.au.
Banco Espirito Santo slid 7.5 percent to 44.5 euro cents, after earlier rallying as much as 7.1 percent. The country’s second-biggest lender by market value appointed Vitor Bento as CEO yesterday after the Portuguese central bank urged it to make changes to its executive management earlier than planned.
Meda AB slid 4.7 percent to 108.80 Swedish kronor, its lowest price since April. Abbott Laboratories said today that it will sell its developed-markets branded generic unit to Mylan Inc., the U.S. generic-drug maker that tried to buy Meda in April, in a deal valued at about $5.3 billion.
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