European Stocks Advance as M&A, Earnings Buoy SABMiller, Henkel

  • Carlsberg rises after announcing job cuts to lower costs
  • TalkTalk gains after earnings report, Vivendi declines

European Markets Register Second-Straight Day of Gains

European stocks climbed, resuming a rally that had stalled earlier this week, amid deal activity and earnings reports.

SABMiller Plc gained 1.9 percent after Anheuser-Busch InBev NV made a formal offer to buy it for about $107 billion. AB InBev added 2.2 percent. Carlsberg A/S climbed 6.2 percent after reporting profit that beat estimates and announcing job cuts to reduce costs. Henkel AG climbed 6.7 percent after raising its annual earnings projection.

The Stoxx Europe 600 Index added 0.7 percent at the close of trading, after rising as much as 1.2 percent. The benchmark gauge has rebounded 12 percent from a September low, helped by European Central Bank President Mario Draghi’s comments last month that officials will consider additional stimulus in December.

“Expectations for ECB easing are still high in the market now, so a weaker euro is giving good support for European equities, while better-than-expected earnings improve sentiment,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen.“It’s all part of the same equation that’s contributing to quite a good outlook for Europe.”

The Stoxx 600 is rising today, after a rally lost steam earlier this week amid worsening data from China and the prospect of higher U.S. rates. The gauge is heading for its best annual performance since 2013.

Among other shares active on corporate news, TalkTalk Telecom Group Plc jumped 13 percent after its sales beat estimates. Banca Popolare di Milano Scarl advanced 6.5 percent on better-than-forecast net income.

Vivendi SA slid 5.8 percent after posting profit that missed analysts’ estimates. Mediaset SpA slipped 9.5 percent after reporting a wider-than-forecast net loss. Osram Licht AG tumbled 28 percent after analysts said they were disappointed by the company’s 2016 projections.

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