By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks rose Friday, gaining
ground after consumers expressed more confidence in the euro-zone
economy.
The Stoxx Europe 600 index rose 0.7% to 333.81, held higher by
drug makers, miners and banks. Shares of Intesa Sanpaolo SpA were
bumped up by 5.1%, 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.
The Stoxx Europe 600 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 in economic sentiment "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.
The U.K.'s FTSE 100 was up 0.4% at 6,614.20, with energy issues
up after oil futures (CLK4) extended their rise above the
$101-a-barrel level. BP PLC (BP) tacked on 1% and Royal Dutch Shell
PLC (RDSA) rose 0.3%. But the benchmark index was off higher levels
after the Office for National Statistics said gross domestic
product in the U.K. in 2013 expanded by 1.7%, lower than a previous
estimate of 1.8%. The growth rate of 0.7% for the fourth quarter
was unrevised.
Meanwhile, Germany's DAX 30 jumped 1% to 9,546.90, powered up by
auto makers as Daimler AG gained 2.1% and Volkswagen AG picked up
2%.
France's CAC 40 rose 0.5% to 4,401.71, though shares of food
producer Danone SA lost 0.5% following a Barclays ratings cut to
underweight. Danone's pricing power has "waned" while global dairy
prices have surged in recent months, and the company's margins will
once again have to absorb the impact, said Barclays as part of its
ratings assessment.
"With persistently negative-earnings momentum, we believe Danone
deserves to trade at a low-single digit discount to peers," said
Barclays analysts in a report.
The major European equity indexes were in line for weekly gains,
with the DAX 30 facing a 2.2% rise, and the Stoxx Europe 600 up
1.8%.
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