European stocks advanced for a third straight week as data showing the euro area emerged from the longest recession on record outweighed speculation the Federal Reserve will trim monetary stimulus.
Bloomberg News reported that Italian banks led gains as Banca Monte deiPaschi di Siena SpA and Unione di BancheItaliane SCPA rallied at least 12 Per cent. GAM Holding jumped the most in almost four years as the asset manager said first-half profit more than tripled. FresnilloPlc and Randgold Resources Limited increased at least nine percent as prices for gold and silver rallied.
The benchmark Stoxx Europe 600 Index increased 0.1 percent to 306.36 this week, extending its 2013 advance to 9.5 percent. The Euro Stoxx 50 Index added 1 Per cent for a sixth week of gains. Gross domestic product in the 17-nation euro area expanded 0.3 Per cent in the second quarter after a six straight periods of contraction, according a report on August 14. That exceeded the median estimate of 0.2 Per cent growth in a Bloomberg survey of economists.
“The global economy is improving, which means company profitability will improve, which means equity as an asset class should attract new money,” Kevin Lilley, head of European Equities at Old Mutual Global Investors, which manages about $17bn, said by phone.”