European Stocks Rise With Energy Firms in Second Weekly AdvanceBy
European stocks climbed for a second day to close at the highest level in almost a year, as global investors increasingly favored equities over bonds after the Federal Reserve increased interest rates.
The Stoxx Europe 600 Index rose 0.3 percent, led by gains in oil companies, which advanced with crude prices. Banks and media companies were the biggest losers. The benchmark rose for a second week, up 1.3 percent.
- Actelion Ltd. was the best performer in the Stoxx 600, rising 10 percent to an all-time high, after people with knowledge of the matter said Sanofi is in advanced talks to acquire the Swiss drugmaker in a deal that could be announced as soon as next week.
- European equities have risen after the Fed’s decision and its forecast for a steeper rate-hike path next year. The Stoxx Europe 600 Banks Index, down 0.3 percent on Friday, is still up 1.1 percent for the week.
- The Euro Stoxx 50 Index closed 0.3 percent higher, after an intraday advance of as much as 0.8 percent briefly helped erase its losses for the year.
- Equity funds worldwide saw $21 billion of inflows in the week to Dec. 14, the ninth-largest weekly figure on record, as the great rotation out of bonds and into stocks accelerates, Bank of America Merrill Lynch strategists wrote in a note, citing EPFR Global data.
- The expiration of some futures and options on stocks and indexes Friday, known as triple witching, added to stock volatility.