European Stocks Post Second Weekly Advance on China Data

Bloomberg(14/9) -- European stocks posted a second week of gains as Chinese economic reports beat forecasts and as the U.S. delayed a decision on military action against Syria. Kabel Deutschland AG rose 7.1 percent after its shareholders approved a bid by Vodafone Group Plc. Nokia Oyj surged 15 percent, gaining every day of the week, after brokerages including Bank of America Corp. and Berenberg Bank upgraded the shares. Randgold Resources Ltd. and Fresnillo Plc each dropped at least 5 percent as gold and silver prices fell. The Stoxx Europe 600 Index advanced 1.8 percent to 311.46 this week, reaching a five-year high on a daily closing basis. It has climbed 11 percent so far this year as the euro area emerged from recession and as central banks pledged to maintain stimulus measures to support the global economy. “European stocks have underperformed U.S. equities so far this year, and with the euro zone out of recession, we’re now in a catch-up phase,” said Espen Furnes, who helps oversee $75 billion as a fund manager at Storebrand Asset Management in Oslo. “The upward move over the last two weeks is warranted and has a solid fundamental basis. For the time being, the Syria situation seems to be under control, and financial markets are responding positively to a dampened conflict level.” The Standard & Poor’s 500 Index has rallied 18 percent so far this year. The Stoxx 600, while lagging U.S. equities in year-to-date returns, has beaten the S&P 500 this quarter. The European gauge has rallied 9.3 percent since the end of June, compared with a 5.1 percent increase in the U.S. benchmark.