European Stocks Advance for a Second Day as ABB Gains

European stocks advanced, posting their biggest two-day rally in almost 16 months, as speculation the European Central Bank will boost stimulus outweighed some worse-than-estimated earnings reports.

The Stoxx Europe 600 Index gained 0.7 percent to 326.11 at the close, after earlier falling 0.5 percent. The benchmark measure rallied 2.1 percent yesterday as the ECB was said to buy covered bonds for a second day and Reuters reported that the central bank is considering corporate-debt purchases.