By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets headed for weekly
advances on Friday as dovish comments from Federal Reserve
Chairwoman Janet Yellen earlier in the week continued to push
indexes closer to multiyear highs.
The Stoxx Europe 600 index rose 0.1% to 348.42, eyeing a 0.4%
gain for the week.
Buoying the benchmark, shares of Shire PLC rallied 13% after the
U.K. drug maker rebuffed a 27.2-billion-pound ($46.35 billion)
takeover bid from U.S. rival AbbVieInc. (ABBV), citing
undervaluation of the company. AbbVie said discussions were no
longer ongoing and that there could be no certainty that any firm
offer would be made.
Alstom SA picked up 1.3% after Siemens AG (SIEGY) and Mitsubishi
Heavy Industries Ltd. sweetened their offer for Alstom's energy
business. General Electric Co. (GE) on Thursday improved its bid
for the Alstom unit, offering new assurances of French control.
The broader positive sentiment was seen as a continuation of an
upbeat trading mood started earlier in the week, when U.S. Fed
chief Janet Yellen said there would be "considerable time" between
when the bond taper ends and when rate hikes begin.
The "trend is your friend and with the Fed reiterating their
dovish stance the follow through has propelled global equities to
new highs," said Mike McCudden, head of derivatives at stockbroker
Interactive Investor, in a note.
However, the ongoing tensions in Iraq and rising oil prices were
still lingering in the background, McCudden said, "and markets will
soon start to price this in."
Islamists rebels on Thursday took control of Iraq's largest oil
refinery, according to workers at the refinery, although an Iraqi
army spokesman said the Iraqi military was in control of the
refinery.
Additionally, U.S. President Barack Obama Thursday ordered up to
300 military advisers to Iraq.
Back in Europe, the U.K.'s FTSE 100 index gained 0.2% to
6,821.18, partly lifted by the rally in Shire shares. Germany's DAX
30 index climbed 0.2% to 10,019.45, while France's CAC 40 index
slipped 0.1% to 4,559.33.
Outside the main index in London, shares of TSB Banking Group
PLC soared 14% on its debut trading day. The IPO was priced at
GBP2.60 a share, but the strong demand sent the company trading
around GBP2.95.
The move took Lloyds Banking Group PLC (LYG) one step closer to
selling off the whole TSB unit as part of a condition of its
government bailout. The lender must divest its remaining shares in
TSB by the end of next year.
Lloyds listed 175 million shares in TSB, or 35% of the business,
raising GBP455 million and selling a bigger stake than initially
planned. Lloyds shares dropped 0.6%.
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