By Sara Sjolin and Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks advanced for a
fourth-straight day on Friday, gaining ground after consumers
expressed more confidence in the euro-zone economy.
The Stoxx Europe 600 index rose 0.7% to close at 333.76, ending
the week 1.8% higher and marking a second straight weekly
advance.
The pan-European benchmark reached an intraday high after the
European Commission's report that its economic sentiment indicator
rose by 1.2 points to 102.4 in March from February, bolstered by
increased confidence among consumers in the services and retail
sectors. The result surpassed expectations of 101.4, according to
FactSet data.
The five-largest euro-area economies saw an increase in
sentiment, said the European Commission.
The improvement "suggests that the Ukraine crisis has -- so far
at least -- not had a widespread dampening impact on sentiment
although it was evident from the Ifo survey that German companies
have significant concerns," said Howard Archer, chief U.K. and
European economist at IHS Global Insight.
Before the release of the euro-area sentiment report, data from
polling firm GfK showed consumer confidence among Britons hit a
six-year high in March.
Among notable stock movers in Europe, shares of Intesa Sanpaolo
SpA were bumped up by 3.5%, as the Italian bank proposed a
cash-dividend level for 2013 that was on par with the one in 2012.
The company reported a net loss for the fourth quarter in part
because of write-downs for bad loans.
Other banks in the region were also rising, with shares of
Deutsche Bank AG (DB) up 1.3% in Frankfurt and Standard Chartered
PLC rising 2.2% in London.
The U.K.'s FTSE 100 picked up 0.4% to 6,615.58 and ended the
week 0.9% higher. The index was buoyed by mining firms rising after
the latest comments from Chinese Premier Li Keqiang, which some
analysts interpreted as a hint of upcoming easing measures to aid
the slowing economy. Li said China should pay great attention to
the problems and difficulties in the economic development and
shouldn't overlook "downward risks," according to state-run Xinhua
News Agency.
Shares of Anglo American PLC advanced 1.5%, Glencore Xstrata PLC
(GLCNF)gained 2% and BHP Billiton PLC (BHP) rose 1.1%.
Insurance stocks sold off in London, however, on concerns about
a regulatory investigation into older pensions and savings plans.
Among the group's decliners, Resolution Ltd. dropped 7.1% and Aviva
PLC lost 2.8%.
Meanwhile, Germany's DAX 30 rose 1.4% to 9,587.19, powered up by
auto makers as Daimler AG gained 2.6% and Volkswagen AG picked up
2.4%. The VW brand is "well placed" to profit from recovery in the
European car market, improved pricing power and strong product
momentum between fiscal years 2014 and 2016, said J.P. Morgan
Cazenove in a Friday note, in which analysts raised its price
target on VW's preferred shares to 222 euros. It also reiterated
its overweight rating.
The DAX index eventually stretched its advance after the German
government's preliminary consumer-price inflation index for March
rose by 1% on a year-over-year basis, trailing expectations of a
1.1% increase. Prices increased by 0.3% on a month-over-month
basis, said Destatis. The federal statistics agency also said on a
European Union-harmonized basis, the inflation rate was up to 0.9%
from year earlier, and that was also below a projected increase of
1%. The German benchmark ended the week 2.6% higher.
In Spain, date showed the country's consumer prices fell in
March, adding to fears the broader euro zone also could fall into
deflation. Such concerns have added mounting pressure on the
European Central Bank to loosen monetary policy further when it
meets next Thursday.
France's CAC 40 rose 0.7% to 4,411.26, closing out the week 1.8%
higher.
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